Creating extraordinary places, connecting and enriching communities
2020 Responsible Business Report
Westfield Miranda Responsible Business Report 2020
About this report Contents
Our 2020 Responsible Business Report provides a summary of overall sustainability performance from 1 January 2020 to 31 December 2020.
This report complements other documents in Visit our website to read more about our About this report 2 Scentre Group’s annual reporting suite such approach to: A message from our Chief as our Annual Financial Report, Corporate • Disclosing our management approach Executive Officer 3 Governance Statement and Modern Slavery (DMAs) 2020 Highlights 4 Statement, providing expanded disclosure • GRI Content Index External initiatives on our approach as a responsible business, and recognition 5 detailing our non-financial performance, impacts • Past reporting Our Purpose 6 and opportunities. • Our stakeholders Our Plan 6 The report is prepared in accordance with the • Case studies Strategic locations 7 Global Reporting Initiative’s (GRI) sustainability reporting guidelines: Core option. Our approach as a responsible, sustainable business 8 Indicators covering greenhouse gas emissions, Our targets 9 water, energy and waste have been externally and independently assured by EY. Our community 10 Our people 21 The scope of this report covers assets owned and operated by the Group during the reporting Our environmental impact 31 period. This report does not include the impacts Our economic performance 43 of all suppliers, service providers and retail Performance data pack 52 partners. Assurance statement 73 Contact 74
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A message from our Chief Executive Officer
All 42 Westfield Living Centres remained open. We remained committed to our community We have made progress on our supply chain I am proud of our team who rapidly adopted initiatives and were agile in our delivery. commitments, including the introduction of our new ways of working and kept delivering for We successfully delivered the third Westfield first Modern Slavery Statement, our Supplier our customers in COVID-Safe environments. Local Heroes program and introduced new Code of Conduct and a supplier industry categories to recognise the community work database to strengthen our understanding of At the time of publication of this report – 31 focussing on crises such as the bushfire March 2021 – the Australian and New Zealand our suppliers and their needs. Our Modern economies are on their way to recovery. emergency. Slavery Statement is available online. Despite the limitations on people movement, Likewise, our people maintained their Our economic performance during 2020 was our annual customer visits were more focus on diversity and inclusion initiatives, impacted by COVID-19. We acted quickly to than 450 million. This demonstrates how delivering connection and engagement secure additional funding so that we were essential our business and brand are to our across our team on key days of significance in a strong financial position to see Scentre customers. with a focus on mental health and domestic Group through and beyond the volatile period. and family violence. Ending the year with a $771 million cash We have worked closely with government surplus, having not received any financial and industry stakeholders to support and Momentum has been maintained on our support from government nor raising equity apply COVID-Safe protocols to our industry environmental pillar and we announced and business so that our communities our target to achieve net zero emissions by from our securityholders, has been a pleasing Faced with the COVID-19 continue to feel safe when they visit us. 2030 across our wholly-owned portfolio. outcome given the unprecedented operating environment. pandemic disruption of 2020, The cash flow shock of the pandemic on our We have agreed a pathway to achieve this we were steadfast in leading small to medium sized retailers was severe. and key initiatives are summarised in this The targets outlined on page 9 are embedded report. We are encouraged by our ability to into the initiatives that form our responsible our business with a responsible We led the development of a voluntary code achieve our emissions intensity target five business scorecard and govern key business mindset. It helped us of conduct which was designed to target appropriate assistance and support for small years ahead of its original date and will be milestones for 2021. The leadership team is to stay focused on the issues to medium sized retailers (SMEs). The Code resetting this target in 2021. We committed accountable for delivering these initiatives that matter most to our business was mandated by governments throughout to the Task Force for Climate-related so we can continue to fulfil Our Purpose: for the long-term, which are Australia and we voluntarily applied these Financial Disclosures and our annual report creating extraordinary places, connecting and and Climate resilience section on pages consistent with the four pillars principles to our New Zealand SMEs. This enriching communities. meant we were directly supporting rental 38–42 provide more detail on how we are of our Sustainable Business relief, something no other industry has addressing the recommendations. We have Framework: our community, equalled throughout the pandemic. By improved our performance on key investor people, environment and year-end, we had reached commercial surveys, moving into the leadership band of Peter Allen economic performance. arrangements with 94 per cent of the retail Carbon Disclosure Project with an A- score brands across our portfolio including 2,456 and recognised as a Sector Leader for Chief Executive Officer SME retailers in line with the Code. Development by GRESB. 31 March 2021 scentregroup.com/about-us/sustainability PAGE 3 Responsible Business Report 2020
2020 Highlights Open $1.26 million Connected >450 million Our Community Westfield Living Centres donated to Westfield Local more than 590 retail partners customer visits and maintained remained open and accessible Heroes for programs that benefit with customers at the height of high levels of community trust in to support our customers and our local communities. COVID-19 restrictions through our health and safety protocols. communities. the trial of a new drive-through contactless click + collect service called Westfield Direct.
COVID-Safe Improved Committed Maintained Our People return to our primary workplaces our Bloomberg Gender Equality to our diversity and inclusion a connected and engaged from May 2020. Index score from 76.87 per strategy through virtual delivery workforce by delivering a tailored cent in 2020 to 78.76 per cent, of our initiatives and training. engagement program through above the global average of 66 stages of restrictions, alert levels per cent. and recovery.
Our Achieved Reduced Leadership Global Environmental our emissions intensity target our energy use by 10 per cent band of CDP investor survey Sector Leader for Development Impact five years ahead of our original year-on-year, of which 4 per cent with an improved score of A-. in GRESB survey. target date. was continued asset operational efficiency.
Our Economic Supported Zero Cash surplus First Performance our small and medium retail financial support received from $771 million for the 12-month Modern Slavery Statement partners through industry the Australian or New Zealand period, with net operating developed setting out how we development of a voluntary Governments, including the cashflows growing 95.7 per cent assess and address the risks code of conduct, which was later JobKeeper program. in the second half of the year. in our direct operations and mandated by government. We supply chain. voluntarily applied the code to our New Zealand SME retailers. scentregroup.com/about-us/sustainability PAGE 4 Responsible Business Report 2020
External initiatives and recognition
Copyright ©2020 Sustainalytics. All rights reserved. CARINDALE FOR DESIGN AND AS BUILT This 2020 Responsible Business Report contains information developed by Sustainalytics (www. SCENTRE SHOPPING CENTRE MANAGEMENT SCENTRE SHOPPING CENTRE MANAGEMENT (QLD) PTY LTD (QLD) PTY LTD sustainalytics.com). Such information and data are Achieved 6 star NABERS Energy Achieved 3.5 star NABERS Water rating for
Westfield Coomera Westfield Coomera proprietary of Sustainalytics and/or its third party 103 Foxwell Road 103 Foxwell Road suppliers (Third Party Data) and are provided for COOMERA QLD 4209 COOMERA QLD 4209 informational purposes only. They do not constitute Rating valid until Rating valid until an endorsement of any product or project, nor an June 2021 June 2021 investment advice and are not warranted to be complete, timely, accurate or suitable for a particular
NABERS is a national initiative managed by the New South Wales Government - Department of Planning, Industry and NABERS is a national initiative managed by the New South Wales Government - Department of Planning, Industry and Environment on behalf of the Commonwealth, State and Territory Governments. This NABERS Rating is based on operational Environment on behalf of the Commonwealth, State and Territory Governments. This NABERS Rating is based on operational purpose. Their use is subject to conditions available and quantitative data collected for the rated site. More stars indicate better performance and environmental outcomes. and quantitative data collected for the rated site. More stars indicate better performance and environmental outcomes. at https://www.sustainalytics.com/legal-disclaimers. SYDNEY FOR INTERIORS www.nabers.gov.au www.nabers.gov.au DONCASTER FOR DESIGN AND AS BUILT
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Our Purpose Creating extraordinary places, connecting and enriching communities
Our Plan We will create the places more people choose to come, more often, for longer
Customers Retail & Brand Partners People Investors We will be customer obsessed, delivering We will be true business partners for our We will be the place for talent to thrive. We will deliver long term sustainable extraordinary experiences, every day. retailers and brands to maximise their returns through economic cycles. opportunity to interact with customers.
We are a responsible, sustainable business
Environmental Economic Community People Impact Performance
Designing and operating Westfield Living Creating a safe, healthy, diverse and Net zero emissions by 2030. Reducing our risk and creating Centres that are considered valued social inclusive workplace where talent thrives. sustainable long‑term value. infrastructure and an integral part of our customers’ lives.
Our DNA – our values We put our customer first We strive for excellence We are constantly curious We act with integrity We succeed together We create a positive legacy
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Strategic locations 20 million people live within The strategic locations of our portfolio enables retail and close proximity to a brand partners to efficiently connect with more customers. Westfield Living Centre
Australia & New Zealand portfolio Extraordinary platform of 42 Westfield Living Centres 42 Customer-centric strategy, focused on Westfield Living Centres delivering what our customers want • During 2020, we had more than 450 million customer visits, including an >450m average of 46 million customer visits per customer visits in 2020 month during Q4 Delivering the first choice platform for retail and brand partners to connect and interact Brisbane 6 centres with customers Essential social infrastructure, strategically located in close proximity to where customers live Sydney 15 centres • With 20 million people living within close Adelaide 3 centres Perth 4 centres proximity to a Westfield Living Centre Canberra 2 centres Auckland Ownership of 7 of the top 10 centres in Australia and 4 of the top 5 in New Zealand Melbourne 7 centres A comprehensive overview of our assets is New Zealand 5 centres in our 2020 Property Compendium, which is available on the investor section of our website. Christchurch
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Our approach as a responsible, sustainable business
We manage our financial and non-financial risks with governance and accountability front of mind and clear accountabilities for execution and reporting on progress.
The issues that matter Our stakeholders We have established communication channels and feedback loops to maintain awareness During the previous reporting period, we Engaging with internal and external and are responsive to our stakeholders’ issues conducted a materiality review and the areas of stakeholders supports our understanding of the and concerns. focus considered to have a ‘high’ influence and Group’s most significant responsible business impact for our business and our stakeholders issues. A number of internal and external An overview of how we engage with our were – energy and greenhouse gas (GHG) stakeholders have an interest in Scentre Group’s stakeholders is provided in more detail in the emissions; water; health, safety and security and business and these are summarised in Our Plan: Disclosures of Management Approach (DMA) for each of the four pillars of our Sustainable employment and labour practices. • Our customers Business Framework (our community, our people, During 2020, we remained committed to our • Our brand and retail partners our environmental impact and our economic customer strategy during the challenging • Our investors performance). operating environment. Taking into consideration the COVID-19 related disruptions • Our people See our timeline. as well as the heightened engagement with Other stakeholders include suppliers, our stakeholders and ongoing delivery against government, industry bodies, joint venture Our Plan, our view is that our material issues partners, community partners and the remain unchanged. Our 2020 report content communities in which we operate. is informed by these issues as well as our During 2020, the frequency of engagement with company’s response to COVID-19. our key stakeholders increased as we responded to the unfolding events created by the COVID-19 pandemic. We communicated our actions and position on the evolving situation. Westfield Doncaster
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Our targets
Our People Our Environmental Impact
Target Status Target Status Started In progress Achieved Started In progress Achieved
Employee engagement Energy and emissions
Maintain greater than 85% (last measured 2019; 1 Net zero carbon emissions for our wholly-owned next business-wide survey in 2021) Westfield Living Centres by 2030
Employee retention Scentre Group portfolio to reach an average Retail NABERS rating of 4.5 stars by 2025 Key talent retention greater than 90% Reduce emissions intensity (based on GLA) by 35% Gender by 2025 (compared with 2009 baseline) A new emissions intensity reduction target will be set Representation of female executives in 2021 from 26.5% to 30% (by end 2021) Recycling and waste management Representation of 40% female, 40% male and 20% either gender across all levels of management Increase waste recovery from operating to 75% by 2025
Increase waste recovery from operations to 90% by 2030 Our Community Maintain waste recovery rate above 95% for all Target Status developments Started In progress Achieved Buildings Community plan All new developments and designs to incorporate 5 star Impactful delivery of 100% of the agreed priority Green Star design guidelines as a minimum by 2025 2 community initiatives that each centre sets in its Community Plan Indicates status of achievement
Maintain customer advocacy >70% for Westfield’s 3 1 – Achieved 2017–current. High levels of employee engagement pre- and post-pandemic, as evidenced by key talent retention; low levels of voluntary turnover, high completion rates of voluntary D&I training; high candidate NPS, investment in leadership ability to connect and enrich the community initiatives and exit data which confirms more than 96% would recommend Scentre Group as an employer. 2 – 80% of agreed priority community initiatives delivered. 3 – As measured through our annual Social Impact and Theory of Change study (external supplier). scentregroup.com/about-us/sustainability PAGE 9 Responsible Business Report 2020
Our community
Community engagement and resilience was more important than ever in 2020.
Our Community Engagement As the economic and social impact of COVID-19 Strategy is in its third year and became more evident across the community, we established a new partnership with Lifeline includes community plans for Australia and Lifeline Aotearoa to reach more every Westfield Living Centre. In people facing mental health issues, opened 2020 we responded to the needs our spaces for pop-up influenza vaccination and COVID testing clinics, and implemented of our communities throughout the initiatives to maintain customer access to our bushfire emergency and COVID-19 retailers throughout periods of restrictions. pandemic and accelerated our Through our 2021-2024 revised Community social impact programs and Engagement Strategy, we are committed to growing our personal connections with the provided support. communities we serve by amplifying existing engagement programs and further embedding In January 2020, we donated $500,000 to our customer-centric focus across all areas of our The Salvation Army and provided in-kind business. support to facilitate fundraising for bushfire impacted communities.
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OUR COMMUNITY $3.62m donated to Westfield Local Heroes since 2018 for programs that benefit the Westfield Local Heroes local community
Our flagship community recognition and awards program completed its third year in 2020.
Over the past three years the Westfield Local survey (more than double the benchmark support within the community. More than 50 of Heroes program has recognised and celebrated for an incentivised survey), with 93 per cent our charity partners who provided Christmas gift 363 individuals who make a positive impact agreeing that the program ‘connects and wrap services to our customers this year were to their local community and provided $3.62 enriches communities’ and ‘helps community Westfield Local Hero alumni. million in community grants. organisations grow’, and 40 per cent aware of Throughout 2020, our centre teams led more the program before voting. In 2020, we saw a significant increase in the than 200 touchpoints with their Westfield Local level of engagement from the community and Our physical and digital platforms create a Hero alumni. growth of the recognition and awards program. high level of awareness of these important We were proud to welcome twice-successful Nominations increased by 38 per cent to local services - the Westfield Local Heroes Westfield Local Hero Chris Boyle to Westfield 1,455 across the portfolio. This was followed announcement was the most viewed story of Helensvale with Australia’s first multi-service by a 30 per cent increase in community the year on our Westfield centre websites with destination to support victims of domestic and voting, to 140,000. In October, we announced 163,849 views and an average dwell time of family violence, Magnolia Place. 126 successful Westfield Local Heroes and 4.17 minutes. This highlights the desire for good awarded $1.26 million in community grants. news and positive engagement with hyperlocal See our case study: Opening Magnolia Place at Westfield Helensvale on page 12 For the first time, we engaged directly with community content. community voters through a survey to measure We continue to work with our Westfield Local We worked with 2020 hero Ashley Scott from motivation, awareness and sentiment. Hero alumni in many ways, including engaging Rainbow Families to highlight the importance of We consider this program to be for the our people as corporate volunteers, inviting intersectionality among our people. Meanwhile, community, about the community and driven them to speak and consult on our recognised 2019 Westfield Warringah Mall alumni, The by the community, and the response to our days of significance as part of our diversity and Avenue, has a regular community pop-up survey indicates this resonates highly. More inclusion calendar and activating spaces in our market three times a week at the centre, selling 2020 Westfield Local Heroes than 62,000 voters completed the optional Westfield Living Centres to grow awareness and items made by people with disabilities.
Data source Westfield Local Heroes 2020 Social Impact Report
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CASE STUDY
Opening the first multi-service approach to domestic and family violence assistance and prevention anywhere in Australia
To support a community in crisis, we opened Creating Magnolia Place is about responding to the local Scentre Group Leasing Executive, Isaac Curgenven, who Magnolia Place at Westfield Helensvale. community’s need and delivering on Our Purpose of led the team said: “I’m excited that with Magnolia Place connecting and enriching communities. It was developed open, we’re beginning a new and positive journey with our Located at one of the main entrances of our Living Centre, in partnership with StandbyU Foundation and received Helensvale community.” Magnolia Place provides a ‘soft’ introduction to services significant community support with the premises being fit Read more for people in the local community experiencing family and out at no expense based on local providers’ and retailers’ domestic violence. generous donations of time, services and goods. StandbyU Foundation, Act 4 Kids and Legal Aid all have Chris Boyle, Founder of StandbyU Foundation, was representatives based at Magnolia Place. named a Westfield Local Hero in 2019 and 2020 by the local community. StandbyU Foundation helps individuals reconnect with friends and family and builds a shield of support and safety around them using special smartwatches.
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OUR COMMUNITY Delivered 80% of our Westfield Living Centre priority community Westfield Living Centre community plans initiatives
Our Westfield Living Centre teams set themselves apart by operating through a customer-obsessed lens and engaging with our communities in ways that are relevant and meaningful to them.
Every Westfield Living Centre has an annual Our teams: November marked the first anniversary of the Community Plan. These plans set out hundreds • evolved or adjusted in-centre initiatives in Westfield Customer Service Promise: we are of community and cultural initiatives we deliver response to the current environment including real people creating moments that matter. to connect local people with each other, to digital implementation Through the promise, we empower our teams raise awareness of important local challenges to confidently and comfortably make the right • focused on operational community support and opportunities and link them with relevant decision for our customers in moments that such as COVID-19 testing stations and community services. matter – and every moment matters. influenza vaccinations Despite COVID-19 restrictions impacting our More than 500 team members were recognised • offered community sites free of charge for business and that of our community partners, for their ‘Service Promise moments’, in which community partners, with more than 1,100 shifting priorities and resource constraints, they demonstrated the values of being ‘curious, bookings from more than 400 organisations our centre teams remained focused on the real, present and confident’. We launched - this equated to more than $270,000 of importance of genuine community engagement. our Service Promise App enabling teams in-kind support Unable to activate many face-to-face programs to nominate their fellow team members and in-centre, teams adapted and reviewed their • activated portfolio-wide initiatives such celebrate the moments that matter through Community Plans to focus on a smaller number as The Westfield Wall of Gratitude. a live, digital wall of fame. of priority initiatives with a broader reach and impact. Centre teams delivered 80 per cent of See our case study: The Westfield Wall of Gratitude their agreed priority community initiatives on page 14 in 2020. During Te Wiki o te Reo Māori, Māori Language Week, Westfield Manukau installed permanent dual language signage around our Living Centre. >$270,000 in-kind support donated to our community partners
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OUR COMMUNITY
CASE STUDY
Nurturing community resilience and hope
The Westfield Wall of Gratitude. This activation was launched across our 42 Westfield Living Centres throughout November 2020. Customers were invited to write a message of thanks to someone who helped them through 2020 and post it on the Wall of Gratitude. With 18,500 messages posted, the activation helped our customers feel connected to their communities. For every message, Scentre Group donated $1 to Lifeline in Australia and New Zealand on our customers’ behalf, totalling $19,000. We partnered with Lifeline Australia and Lifeline Aotearoa to support their important work and to promote their services to our customers, communities and retail partners who may need critical support from Lifeline following such a difficult year. Our National Community Experience Manager, Pam Wilson said: “2020 was an extremely hard year for many. The messages our customers posted were genuine and heart-warming, recognising people who took action to support those around them.”
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OUR COMMUNITY >450 million customer visits as at 31 December 2020. Average 46 million per month in Q4 2020 Listening and responding to customers
The health, safety and wellbeing of our customers, retail partners and our people while maintaining business continuity was our priority in 2020.
Adhering to government and health advice and We installed hand sanitiser dispensers and, listening to our customers to better understand despite shortages, equitably sourced over their needs informed our COVID-Safe protocols 2,000 litres per week to make it available at and response during the year. entrances, lift lobbies, amenities, valet, digital From March, we implemented health and safety directories and at concierge desks across our protocols so our customers could continue to Westfield Living Centre portfolio. feel safe and confident when they visited us. We increased signage and centre announcements These were reflected in our COVID-Safe plans, to remind customers of hygiene and physical applicable to each region. distancing requirements including in key We maintained the highest standards of dwell areas, such as at our entry and exits and cleanliness and hygiene across all our Westfield vertical transport locations. Living Centres. We increased the frequency We worked closely with our retail partners and and focus on cleaning of high touch points supported them through the various stages of such as lifts, escalators, hand rails, screens, restrictions so they could continue to operate in entrances, ticket and vending machines. We a COVID-Safe way. We implemented customer Above: Westfield Sydney Lifebuoy hand sanitiser partnered with our cleaning providers in each capacity signage in their stores, queue station centre to address their safety and wellbeing in management and at times acted as a conduit Right: Westfield delivering safe environments for our customers for health authorities. Miranda’s COVID-Safe food court reopening and retail partners. We worked closely with our suppliers to manage critical supplies, this included the All 42 Westfield sourcing of personal protective equipment and hand sanitiser for our frontline teams. Living Centres remained open every day during the pandemic
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OUR COMMUNITY CASE STUDY
As a key stakeholder for Local Health Authorities, The Protocol was designed to help the retail we displayed public health communications industry continue to prioritise public health to across our Connected Screen Network. In protect people against infection and stop the Victoria, we hosted mobile testing sites in four spread of COVID-19 within physical environments. of our Westfield Living Centres; an initiative later Moving into 2021, health and safety will continue publicly recognised by the Victorian Premier. to be a major focus across our portfolio. In November, in line with South Australian With centres continuing to consume over 1,000 Government restrictions and advice from SA litres of sanitiser per week, we have partnered Health, we provided face masks for all of our with UniLever’s LifeBuoy to procure 655 people. We also supported the department with premium automatic freestanding sanitising units its public health engagement to distribute face including 75 per cent alcohol disinfectant. This masks to customers across our Adelaide centres. commercial partnership with LifeBuoy is one In Western Sydney, some of our centres were example of our ongoing commitment to hygiene chosen by health authorities as the location for and making accessible sanitiser a design Responding to our customers’ fast-changing needs their public health community engagement and feature of our centres. education activities, recognising the proximity of In April 2020, we launched comfort of their home for pick-up our centres to large populations. Westfield Direct across all of through one, contactless stop. our Australian Westfield Living Our COVID-Safe response was validated For our retail partners who Centres. Westfield Direct enabled through our customer survey platform, Westfield were still able to trade within customers to purchase products iQ. Our customers told us they felt assured by government restrictions, Westfield online from multiple Westfield our visible health safety and hygiene measures. Direct provided a new way for retailers, in one transaction and Subsequently, as restrictions eased we saw an them to continue reaching their pick them up from the convenience immediate return of customers returning to their customers. The response from our of their car via a contactless drive- daily activities, including dining out, shopping retail partners was overwhelmingly thru location at their local centre. and resuming beauty services. positive, with over 590 retailers Our team were agile and offering up to 14,000 products In line with restrictions easing and as more responded to our customer needs. across a variety of categories, from customers returned to shopping centres, the Westfield Direct was an innovation fresh food and quick eat operators Shopping Centre Council of Australia, of which that was fast-tracked to provide to everyday essentials and lifestyle our CEO Peter Allen is Chair, worked with other customers a safe and easy solution retailers. industry stakeholders to introduce the COVID-19 to shop for the items they needed Retail Recovery Protocol. in one transaction, from the
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OUR COMMUNITY
National projects and programs
We identify mutually beneficial strategic partnerships that deliver positive outcomes for our communities, our partners and our business.
We consult with peak bodies and community Women’s football leaders to identify needs and opportunities in our We are proud to continue supporting women’s communities that align with our centre operations football in Australia through our long-term and activities. partnership with the Football Federation As part of our ongoing National Youth Resilience Australia (FFA), continuing as naming rights Plan, designed to help young people thrive partner of the Westfield Matildas, Westfield and build resilience, we implemented the first Young Matildas and Westfield Junior Matildas, sessions of our Mental Health First Aid training as well as Australia’s professional women’s for our frontline teams focusing on engaging football competition, the Westfield W-League. with customers, retail partners and community Approaching our 13th season of support, the members who may be in distress. In a survey sponsorship connects our communities with of participants, all rated their confidence to the sport they love through several different approach a customer or retailer who may be ways, both in our physical Westfield Living experiencing poor mental health as high or Centres as well as more importantly this year, very high after the training. We will roll-out the connecting them digitally via our social and training to all our teams throughout 2021. digital platforms. We also partnered with Lifeline Australia on a number of operational and promotional projects to support customer and retailer wellbeing and safety.
Westfield Matildas See our case study: The Westfield Wall of Gratitude on page 14
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OUR COMMUNITY $30 million dining precinct opened at Westfield Doncaster Developments
Through our Development team, we engage with our community stakeholders throughout the planning and development process, including pre-development, active development and following launch when we recognise the centre as ‘stable’.
From a planning perspective, this includes The redevelopment will feature high-end retail Westfield Doncaster relevant planning authorities and local and premium commercial within the existing In November, Westfield Doncaster celebrated councils and state and territory government building, while the new 22-storey luxury the opening of its new $30 million dining departments. Our Community Officers are residential tower will be added above with precinct which was an upgrade to the existing responsible for developing and implementing podium gardens and views across Sydney level 2 dining area, previously home to five community engagement strategies, which Harbour and Hyde Park. restaurants. Opening in line with easing of include frequent and consistent communications We will display an historical visual display about restrictions in Melbourne, the precinct features with neighbouring businesses, institutions, local the ever-evolving nature of the city centre for a curated mix of 14 dining and dessert venues. schools and groups. the public to view. The hoarding will feature a Sitting above the retail levels with expansive Whether that’s sharing plans or surveys to better photographic timeline that tells the site’s story views of the city, the almost 5,000sqm ‘modern- understand customer viewpoints or requesting of transformation throughout the years and village-style rooftop’ offers a new dining input to better guide our decision making on the into the future. Drawing on the iconic nature of destination in Melbourne’s east. curated retail and services mix – we believe this the David Jones windows over the years, the is critical to maintaining a strong connection to display will be featured within window frames – our communities. windows into transformation. Westfield Carindale The old David Jones building is listed as In September 2020 we completed the 101 Castlereagh development / “Heritage Significant” and throughout the $50 million redevelopment of Westfield Westfield Sydney expansion building process we will maintain / restore Carindale which included the opening of heritage elements, such as the building awning. the latest format Kmart store, a key retailer In December 2020, Scentre Group was Ultimately, this development will transform our customers told us they want to see in appointed by Cbus Property to design and Sydney’s CBD skyline, celebrate the history of centre. The introduction of Kmart follows the construct the residential and commercial tower one of Australia’s most iconic retail buildings consolidation of David Jones from two levels on the site of the former David Jones menswear and deliver an innovative lifestyle destination. into one during 2019. store on the corner of Market and Castlereagh streets in Sydney’s CBD. Westfield Doncaster’s new dining precinct
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OUR COMMUNITY CASE STUDY
Upparel’s first physical Giving and volunteering store creates community connection
We provide two volunteer days per year and match charitable We partnered with Upparel, a textile contributions made by our people dollar-for-dollar. upcycling company, to support the launch of their first physical store in Westfield Southland. We offered the start-up a vacant tenancy for three months. At the request of our people, we support more In addition to the $1.26 million in grants to Upparel take clothing, shoes, totes than 120 charities through our Workplace Giving our Westfield Local Heroes and $500,000 to and either rehome, repurpose (ie platform. This year, the largest percentage of The Salvation Army, we provided more than soles of shoes made into wheel our contributions were for charities supporting $20,000 in charitable financial donations and stoppers) or recycle (stripped, acid communities impacted by bushfire. community sponsorships. We also provided washed and made into new yarn) the in-kind contributions through marketing Our combined employee and company goods. We are working with them support and access to space – we had more workplace giving contributions totalled to collect old Westfield uniforms to than 1,100 bookings by more than 400 local $179,756. Our people donated 504 recycle. volunteer hours for 22 different charities and charities of our community sites, valued at While the business only started organisations. Workplace giving saw a 61 per more than $270,000 of in-kind support. Some operating in 2020, Upparel have cent increase in donations in Q1 compared to of these bookings could not go ahead due to already diverted 1.5 million items 2019. This was due to a high level of donations last-minute COVID-19 restrictions. By providing from landfill. to charities supporting bushfire impacted space to charities for them to offer gift wrap communities, including The Salvation Army, St services to our customers at Christmas, more Westfield Southland Centre Manager, Vincent de Paul and the Red Cross. than 70 charities were able to raise almost Michael Croxford, said: “What $295,000. Upparel is doing is really resonating The proportion of volunteer hours was with customers and they have plans significantly impacted – dropping by 74 per cent to be even greener. If we can be a - with many community organisations unable to part of their story, supporting their host volunteers because of COVID-19 physical connection with customers while distancing restrictions. they are building and refining the business, then that is a fantastic Community aid $179,756 outcome for everyone.” This year, the largest percentage of our combined staff and Read more contributions were for charities supporting company workplace giving communities impacted by bushfire contributions
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OUR COMMUNITY
Security
The safety and security of our customers, retail partners and our people in our centres, offices and online spaces are fundamental to our business and delivery of extraordinary customer experiences every day.
COVID-19 demonstrated the core role security • Engaging with the Police, government • Adopting a collaborative security approach plays in keeping our business operating, agencies, industry bodies and community across our organisation so that efforts to whether this be through responding to changing partners – building collaborative address new and emerging threats are co- government health advice or through providing relationships with our partners at a local ordinated. intelligence insights to enable our teams to and national level is vital. It means all Scentre Group is a participant in the Greater make informed decisions. parties feel confident to share information Sydney Women’s Safety Charter (the Charter). and best practice when appropriate, as The nature of our business, with more than The Charter recognises the diverse experiences well as understanding specific roles and 450 million customer visits annually, means it is of women and aims to promote a safer city for responsibilities if an incident does take place. important for us to focus on prevention. Equally, women of all ages, abilities, identities, and social success is not always defined by an incident but • Protecting our assets – we closely follow and cultural backgrounds. how we respond. the advice in the Australian Prime Minister’s Crowded Places Strategy and, at a senior Our approach to safety and security is based on level, we continue to engage with senior the key principles of: State and Federal officials in developing • Preventing an incident taking place – policy in this area. this can range from incorporating • Preparing – management and employee preventative measures in design through readiness in the event of an incident is given better lighting and CCTV coverage, as well the highest priority. We exercise our plans as ensuring we maximise every opportunity regularly at both a local and company level to learn from incidents. and we support and work with emergency services to jointly exercise their response Constable Steven from the Neighbourhood plans at our centres out-of-hours. We also Policing team has been working alongside the Westfield St Lukes team to positively encourage our retail partners to participate in impact the community. these exercises.
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Our people
Employee engagement and resilience were more important than ever in 2020.
Employee engagement Our people and culture Despite the pressures of 2020, our people Our employee engagement since remained focused on delivering against Our Plan. becoming Scentre Group in 2014 We responded early and decisively to address has been consistently strong, with the impacts of COVID-19 and promote the health our most recent Employee Survey and wellbeing of our people whilst maintaining business continuity. in 2019 seeing us achieve an Each state and territory in Australia and New engagement score of 84 per cent. Zealand operated within different restrictions We will conduct our next business- or alert levels throughout the year. Our teams wide survey in 2021, consistent demonstrated agility to adjust and re-adjust their resourcing levels and operations to meet these with industry best practice to changing requirements. conduct one every Across our Westfield Living Centres and two years. Support Offices, our people adopted new ways of working, led by our CEO and supported by business tools such as Microsoft Teams. The way we embraced new technology kept teams connected during this time.
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OUR PEOPLE 14% of our people voluntarily participate in employee representation groups
A deliberate approach to engaging • training and guidance on ways to work with It was necessary to make early resourcing and our people remote teams and new technology remuneration changes to ensure our business • Friday lunch time broadcasts by professional was as resilient as it could be to the economic We supported our people’s experiences through musicians that were enjoyed by our people shocks brought about by COVID-19 restrictions. lockdowns, stand by and remote working with an and their families whilst working remotely. This included our Board Directors and senior engagement plan. leaders agreeing to take a 20 per cent reduction In addition to this strategy, we continued to We leveraged our intranet, regular email in fixed remuneration and board fees for a period engage our people to participate in employee communications from leaders, in particular of three months. representation groups. Our diversity and our CEO, and adopted Microsoft Teams as a inclusion approach across seven working Throughout all of these resourcing changes, collaboration tool. Engagement tactics were groups, our Allies who foster a culture of we learned that our leader-led model is more designed to educate, connect and motivate our inclusion for members of our LGBTI+ community, relevant than ever. people, fulfilling the objective of supporting and our People Champions, continued to be health, safety and wellbeing whilst providing engaged throughout the year and support our business continuity. people. Totalling 335 people, their participation Our tactics included: represented 14 per cent of our total workforce. • CEO updates to help interpret the rapidly changing operational requirements from Resourcing changes government We made resourcing changes in the first half of • CEO updates about the business and 2020 in response to the immediate impacts of industry initiatives as well as regular people the pandemic and in the longer-term interests of focused ‘check ins’ preserving as many jobs as we could. In some • a comprehensive and updated Q&A cases, we said goodbye to some very long- document to help leaders and our serving, well-loved team members, especially people make sense of the restrictions in our design and construction team, as we and requirements and have informed bought forward our plan to focus on targeted conversations developments over large-scale projects. Our • tips and guidance for maintaining physical/ CEO communicated the changes in a video mental health and wellbeing during the message as most team members were working pandemic remotely and due to the health orders it was not • increased support through our Employee possible to speak with leaders and impacted Assistance Program on topics including team members in person. This was a difficult Westfield Miranda COVID-Safe food court domestic and family violence and mental decision to make and communicate in these health circumstances. scentregroup.com/about-us/sustainability PAGE 22 Responsible Business Report 2020
OUR PEOPLE CASE STUDY
In 2020 we received valued external recognition for our diversity and inclusion program. Establishing a new rhythm workplace. Our Living Centres continued to trade in line with local restrictions. Our commitment to diversity and • Job Access, a government Large scale meetings were hosted virtually inclusion means our workplace body, has asked to use our draft in 2020. Our CEO’s bi-annual “Team Talk”, an Our COVID-Safe Workplace status enabled our environment is supportive of equal all-of-company update and team recognition people to return to work with confidence. For our Workplace Adjustment Policy opportunity and equal access to to session was held on Teams for the first time. The combined success we know that as a business as a benchmark standard career development and other show other companies how format showed that high levels of engagement we work better when we are together, relying like benefits, and is inclusive, allowing they can balance the imperative could still be achieved remotely. This is a any organisation on the energy that comes from everyone to thrive. of inclusion with commercial permanent change. spontaneous interactions. We received the following external needs In May, our team at the Sydney Support Office Our COVID-Safe work practices remain in place. recognition: • awarded the Accessibility Tick commenced a safe and gradual return to the for workplace accessibility • Silver status at the Australian and inclusion across our New Workplace Equality Index Zealand portfolio. Awards in recognition of the continued work we are doing to create a welcoming, safe workplace that embraces all of our people. This saw us move up from Bronze status in 2019 • endorsed as an Employer of Choice for Gender Equality for the third consecutive year by the Workplace Gender Equality Agency • recognition for the second consecutive year as one of 10 Australian companies on the Bloomberg Gender-Equality Index with an improved score of 78.76 per cent CEO, Peter Allen, presenting an all staff Scentre Group • citation with the Workplace event live via Microsoft Teams Gender Equality Agency annual report submission
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OUR PEOPLE Endorsed as Employer of Choice for Gender Equity by WGEA Diversity and inclusion
In 2020, we continued to embed our culture of diversity and inclusion with greater empowerment for our people to own and drive the strategy.
In 2020 we increased the impact of our diversity • Providing targeted education sessions for Our Working Groups continued to make and inclusion (D&I) plan by creating a stronger teams who were under significant pressure, a difference link between our internal initiatives and our such as those supporting retail partners community experience plans. through commercial renegotiations and our While mental health and wellbeing and domestic teams in Victoria who endured a notable and family violence were a key focus, other three-month lockdown. working groups continued to deliver their plans. Mental Health and Domestic and Family Violence • Activating R U OK? Day in September Gender Equity: and White Ribbon Day in November with • launched the refreshed gender equity The impact of COVID-19 immediately elevated online presentations, personal stories and strategy and introduced the working group our focus on two pillars – mental health and online briefing kits to guide smaller group members and their personal stories as part of wellbeing, and domestic and family violence – discussions about the breadth and impact International Women’s Day celebrations due to an increased threat of home violence and for people of these issues. Feedback poor mental health. highlighted that this approach was very • endorsed by the Workplace Gender Equality Agency (WGEA) as an Employer of Choice As part of our engagement plan we worked to human, personal and supportive. for Gender Equality for the third consecutive make information, resources and tools easily • Continued promotion of the domestic and year accessible. This included: family violence online training module, • achieved recognition for the second • Providing a steady flow of content for stories, especially for leaders, so they could be consecutive year as one of 10 Australian resources and help guides that were made prepared to support their teams if necessary. companies in the Bloomberg Gender- accessible for our people on our intranet. In 2020, 1,009 people had completed the Greater Sydney Women’s Safety Charter Equality Index with an improved score of International Women’s Day 2020 event – training. Scentre Group team • Facilitating greater access to our mental 78.76 per cent health and wellbeing general awareness • Launching the “Mind Your Step” Challenge • achieved our citation with the WGEA annual training by making it virtual. In 2020, 983 which resulted in 511 people across report submission people completed the training as an online Australia and New Zealand forming teams module and 144 had attended a virtual and completing a virtual journey around 12 • conducted a pay equity assessment and session. mental health learning modules. external benchmarking post year end 2019 scentregroup.com/about-us/sustainability PAGE 24 Responsible Business Report 2020
OUR PEOPLE
to ensure internal and market equity for LGBTI+: All Abilities: females. Outcomes were shared with senior • Achieved Silver status at this year’s For our people and workplace visitors: leaders to consider adjustments as part of Australian Workplace Equality Index Awards • Continuing to modify our work practices our year-end process for 2020 in recognition of our continued work to and physical work environments to • refreshed our people planning process to be create a welcoming, safe workplace that enable people with disabilities to have the conducted twice a year with gender targets embraces all of our people. equipment and tools they need to perform established where required • Activated a virtual Wear It Purple Day’s their roles. • confirmed regional representation for the theme of “We are the change”. The highlight • As part of this policy, we are working with Property Council of Australia D&I Councils was a video of Working Group executive Job Access, an Australian government body • as part of our ongoing listening and sponsor, Phil McAveety’s interview with well- and Workbridge New Zealand, that provide engagement strategy we redesigned our known Sydney drag queen Etcetera Etcetera funding for workplace adjustments, to help Connect Program to include a listening which was entertaining and educational on us fund works needed to adapt workspaces. strategy (Connected Leadership) on gender issues experienced by this community and They have asked to use our draft policy related topics with both women and men shared the focus of what Scentre Group is as a benchmark standard to show other leading conversations to identify and resolve doing to support our people to feel safe to be companies how to balance the imperative of barriers to gender equality in the workplace their whole selves at work. inclusion with commercial needs. • continued virtual Parents Lunches with our • Refreshed the Allies group who now number • Making physical changes to access points in CEO and HR Director to understand any 277 or 11 per cent of our total employee our Sydney support office, with the main level barriers to re-entry into the workforce for our population. kitchen and Market Street entrance being returning parents • Continued to promote the completion of adjusted to allow better access for people in • refreshed tools for finding great talent the LGBTI+ online training module with 839 wheelchairs. including our recruitment and selection people having completed it in 2020. • Developing a gender-neutral bathrooms toolkit, employee promise and refer great Since broadening the gender definitions plan for Sydney support office with client talent program. recorded in our recruitment system in January bathrooms on two levels being re-purposed. 2019 to include 11 gender options, coupled with our diverse talent attraction strategy, we have successfully attracted 247 applicants across nine genders. We have since welcomed six people to our team from this candidate pool. Glenn Sinclair – Scentre Group, Lisa Maxcey – Scentre Group, Darren Wolley – Scentre Group, Caitlin Lye – Scentre Group, Phil Turner – Accessibility Tick
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OUR PEOPLE Achieved 3 per cent Aboriginal and Torres Strait Islander Christmas casual recruitment goal For our customers: Reconciliation Action Plan: recruiters to attract more Indigenous • Being awarded the Accessibility • We extended our RAP deliverables by candidates and ensure that all roles Tick for workplace accessibility and inclusion six months to January 2022 due to the advertised encourage Aboriginal and across New Zealand Westfield Living disruption of COVID-19. Torres Strait Islanders to apply. During the year, six Indigenous Australians completed Centres. • Celebrated NAIDOC Week (November 8 –15) internships with us through our Career • Working with Apple Music (who provide our with a virtual presentation from the working Tracker program. We continued with our ambient music in centres) to activate “Quiet group in Sydney and welcome to country and traineeships program for Indigenous high Hour” in three Westfield Living Centres Indigenous team member Q&A broadcast school students. We have a target of 15 to aid customers with sensory perception to all of our people from Westfield Tea Tree students completing the program annually. challenges. Plaza in South Australia. • Trialling scent free bathrooms for customers • As part of our commitment to increase the Westfield Hornsby - NAIDOC Week with smell based sensory perception cultural awareness of our people about the celebrations, July 2018 Kid’s activities formed an important element of customer challenges. past and present for Aboriginal and Torres celebrations and engagement • Developing a training plan for 2021 to Strait Islander peoples, we launched an support our customer-facing people, online training module in November with including cleaners and security guards, feel input from one of our strategic Indigenous confident assisting people with disabilities in recruitment partners. By year end 757 people our Westfield Living Centres. have completed it. • Continued to embed the Aboriginal and Multicultural Capabilities: Torres Strait Islander procurement strategy • Activating Harmony Day celebrations in in order to exceed our targeted spend of March 2020, despite COVID-19 disruptions, $1 million with Supply Nation accredited by sharing personal stories from team businesses. members with culturally diverse backgrounds • Achieving our 3 per cent Aboriginal and to build awareness and understanding. This Torres Strait Islander Christmas casual will be expanded in 2021. recruitment goal for 2020, as part of our • Launching Module 1 of our Cultural diverse recruitment strategy. Competence online training with 1,112 people • We have continued our commitment completing the training by year end. A to increasing the representation of second module was developed and will be Aboriginal and Torres Strait Islanders in released in 2021. our organisation. We have established relationships with four specialist diversity
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OUR PEOPLE Approximately 40% of our team completed Training and development voluntary D&I training
Capability building through training and development remains a critical enabler to delivering our strategy and our vision to be the place where talent thrives.
Leveraging digital learning to embed a Building on the LGBTI+ and Domestic and Family All of these modules were released as part culture of diversity and inclusion and Violence training developed in prior years, we of campaigns and activations on days of launched additional training, including: significance during 2020, with all team members responsible business • a multicultural capability module created in encouraged to complete the training to increase We enhanced our online Code of Conduct partnership with SBS Broadcasting: cultural their knowledge and understanding of the module with a clearer focus on individual similarity vs difference topics. Our people have embraced the learning responsibility and a call to action to our people opportunities with strong completion rates • an Aboriginal and Torres Strait Islander to “Speak Up” in the event they saw or heard in 2020. practices that were not aligned to our policies. cultural awareness module, developed with support from the Aboriginal Employment Training 2020 completion We developed a Modern Slavery online module Service. It shares key historical moments rate of total aimed at identifying risks in our supply chain. alongside present-day challenges and workforce The Modern Slavery online module is targeted practices of our First Nation peoples. Domestic and Family Violence 41.5% to key roles with the closest proximity to our It also outlines the role Scentre Group (available Jan – Dec 2020) supply chain and commercial decision making plays to support the building of a fair and LGBTI+ 34.5% such as our procurement and leadership roles. just Australia (available Jan – Dec 2020)
Our Diversity and Inclusion Council includes • an online version of our mental health and Mental Health and Wellbeing 40.5% seven employee led working groups: Gender wellbeing general awareness training in (available Sep – Dec 2020) Equity, LGBTI+, Domestic and Family Violence, partnership with our employee assistance Multicultural Capabilities 45.8% Mental Health and Wellbeing, All Abilities, program provider Assure. (available Mar – Dec 2020) Reconciliation Action Plan and Multicultural Capability. Each working group aims to Aboriginal and Torres Strait 31.2% Islander Cultural Awareness raise awareness and understanding through (available Nov – Dec 2020) education on their unique topic.
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OUR PEOPLE
A different kind of investment in our We refreshed the leadership development leaders for 2020 pathway in sessions led by our CEO and senior leaders to anchor future programs to our people Our Culture and Capability Plan for 2020 vision “to be a place where talent can thrive”. highlighted an ongoing need to invest in our The benefits of the revised programs will be leaders. realised in 2021. For 2020 we were able to The insights gained from our leaders during the gain alignment and agreement that the role of COVID-19 disruption gave us an opportunity leaders is to: to embark on a different kind of investment • create a work environment where talent can in 2020. We focused on engaging leaders to thrive despite uncertainty and complexity identify the role they play with our people, • be enterprise leaders who apply broad which can positively impact on the sustainability thinking to complex issues across the of our talent pipeline. Our investment included: business and work with peers to resolve 1. Consulting and collaborating with our problems impacting the organisation executive leaders to develop a formalised • lead the “whole person”, both their personal sequence of events for people planning: wellbeing and professional development traditionally, held twice a year, our People Planning Forums have been the place where • continue to embed a diverse and inclusive key talent, succession pipelines and leaders of culture the future were identified. • enhance the quality and consistency of people conversations across the spectrum of 2. A revised way to measure leadership the employee experience. potential: adaptability and agility during an uncertain period and a commitment to lead change from the top were all hallmarks of our most successful leaders during COVID-19. 3. Leadership development programs: our leadership development agenda since 2014 has been anchored to Our Purpose, Plan and DNA (our values) and focused on supporting the business and cultural transformation agenda.
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OUR PEOPLE Delivered enhanced risk controls and efficiencies via Beakon software People protecting people
Our approach to safety is underpinned by our people protecting people culture which means we design, construct and operate our Westfield Living Centres with the safety of our people, our contractors, our retail partners and our communities top of mind.
In 2020 our focus was on protecting our injuries to employees increase from 0.3 per The program outlines the life safety risks and people during COVID-19 through robust crisis million hours worked in 2019 to 0.6, which controls teams need to focus on and includes management processes, strong displays of represents a movement from one moderate, reporting and assurance processes to monitor industry leadership and an agile operational temporary injury, in 2019 to two in 2020. effectiveness. response. We maintained a strong focus on Class 2a (Moderate Consequence) injuries to During 2020 our Life Safety Framework government and subject matter expert endorsed contractors, for the same period, increased from and Management System was updated and risk controls, so our people, contractors and 3.04 to 4.95 per million hours worked. While the relaunched. The framework and system clearly retail partners were able to continue to operate underlying number of injuries remained constant outline roles and responsibilities and mean key and provide services to our local communities. at approximately 23, the reason there was an requirements are embedded into our day-to-day increase is because there was a reduction in the We revised our Sexual Harassment Policy and operations. Our Design and Construction team number of hours worked across development developed support tools, both for individuals continue to hold AS4801 certification for safety projects during the year. and managers, to address sexual harassment as management systems, with Scentre Group a workplace health and safety issue. We expanded our suite of safety metrics and progressing our ISO45001 certification in 2021. Our aim is to inform, empower and set the assurance reporting. This further enabled expectation that our people feel safe to speak us to assess the effectiveness of our safety up and take action on sexual harassment and framework and management system, our critical ensure we listen to, empower, respect and risk controls and our safety performance data. support people impacted. We monitor lead indicators to identify system failures before significant incidents occur. During 2020 we had no fatalities or high consequence injuries across our portfolio (Class To support our focus on creating a safe 1*). We saw Class 2a (Moderate Consequence) workplace, we launched our key risk and critical control program across our portfolio.
* Class 1 High-consequence is defined as: Non Fatal with no recovery (ie amputation), or > 6 months to recover fully to pre-injury/ illness state
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The launch of our new Life Safety software As part of our people protecting people safety platform, Beakon, which includes incident culture we recognise ‘Safety Heroes’ as a part management, contractor management, online of our bi-annual SCG Hero Awards to recognise inductions, key management and site check team members’ actions and encourage a in/out functionalities, added enhanced risk continued focus on safety as a high priority in controls and created efficiencies for our front- everything that we do. line teams. In 2021 we will continue to enhance our software systems focusing on electronic Safety in tenancy openings permit to work, risk registers, observations and self-service reporting. During 2020 we relaunched our safety policies around store fit outs undertaken by our retail Safe Work Month was celebrated across Australia partners with updates to our Structural Design and New Zealand and was used to launch our & Installation Certificate (SDIC) and Electrical revised Scentre Group Life Safety Policy and a Safety & Electrical Hazard Identification (EHI) new induction video. policies. We have seen increased engagement from our Our SDIC and EHI policies are designed to operational teams as we built upon our incident ensure that works commissioned by retailers management processes. Centralised alerts, are designed and built to the highest safety bulletins and lessons learned communications standards. allow for consistent and rapid delivery of safety actions and messages. In addition, we added To remove future fire hazards from our Westfield monthly cross team safety calls and training, Living Centres, we also updated guidance in regularly attended by senior management to our design standards and retailer fitout guides reinforce our safety culture. restricting the use of flammable aluminium composite panels and flammable cool room To support our approach of “one Scentre panelling containing extruded/expanded Group” we introduced an extended life safety polystyrene in newly fitout retail stores. team, bringing together the safety and risk team Additionally, we relaunched our Tenancy Safety members from across the business to consult Certification process and improved our storage and drive change. In 2021 a collaborative process for this documentation. life safety roadmap and divisional life safety improvement plans will drive change in line with All of this contributes to making our Westfield our life safety goals and objectives. Living Centres a safer place for our customers, retail partners and people.
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Our environmental impact Despite the disruptive impacts of 2020, we maintained momentum on the environment pillar of our Sustainable Business Framework. This included the announcement of our target to achieve net zero emissions by 2030 across our wholly-owned portfolio and a public commitment of support for the Taskforce for Climate-related Financial Disclosures (TCFD).
We acknowledge the In February 2020 we announced a net zero environmental data performance Scope 1 and Scope 2 greenhouse gas emissions target to be achieved by 2030 across our wholly indicators for 2020 have been owned portfolio. While this commitment relates materially impacted by COVID-19 to the assets which we 100 per cent own, our and the resulting partial operations Net Zero strategy is applicable to all our assets and throughout 2020 we engaged with our joint observed across our portfolio. venture asset owners to align on pathways to net zero attainment. When we exclude these impacts, we exceeded We continued to focus on and enhance our our 2025 portfolio emissions intensity reduction governance, strategic approach and risk target of 35 per cent, achieving a 37 per cent management of climate related financial risk reduction since 2009. This is five years in and resilience to physical climate change advance of the original 2025 target date. impacts on our Westfield Living Centres. In Our reduction in energy use in 2020 of 10 per 2020 we completed transitional risk scenario cent on the prior year was driven in part by analysis aligned with published 1.5 and 2 degree COVID-19 related impacts on our operations and reference scenarios and updated our portfolio the implementation of our energy analytics and asset level climate exposure and vulnerability LED projects across 2020. assessment work from 2018.
Westfield Doncaster is one of our Next Gen Living Centres
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OUR ENVIRONMENTAL IMPACT
Our key highlights in 2020: • Achieved our 2025 portfolio emissions intensity reduction target of 35 per cent by achieving a 37 per cent reduction 37% since 2009. This does not include additional reductions portfolio emissions intensity reduction attributed to the impacts of COVID-19 and is five years in since 2009 advance of the original 2025 target date. • Continued improvement of our portfolio average NABERS Energy rating, achieving a rating of 4.4 stars. This is an 10% increase in our portfolio NABERS average from our 2019 rating reduction in our energy use for stable centres in Australia’s year- of 4.13 stars. on-year, of which 4% was continued • Reduced our total energy use by 10 per cent of which 6 per asset operational efficiency cent is considered COVID-19 impact and 4 per cent energy efficiency and asset optimisation. 4.4 • Our 6 Megawatts of solar continues to generate between average NABERS rating of 8,000 and 9,000 MWh of electricity per annum. our portfolio • Achieved Sector Leader Status with GRESB within the Global Listed Development Sector. • Improved our performance and achieved an A- rating in the >8 GWh Carbon Disclosure Project (CDP) which moved us into the of electricity p.a. solar Leadership band. installations generated • Increased waste recovery from operations by 4 per cent, of which 2 per cent is considered to be COVID-19 related impacts and 2 per cent as a result of continued focus on 4% organic waste collection. increased waste recovery from operations, 2% from continued • Reduced water use by 19 per cent on the previous year. focus on organic waste collection While the majority of these savings are considered to be COVID-19 impact related, we continued implementation of smart metering and real-time data insights.
Westfield Coomera has a 6 Star NABERS Energy rating and a 3.5 Star NABERS Water rating.
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OUR ENVIRONMENTAL IMPACT
Our net zero emissions commitment
We are committed to a target of net zero Net zero emissions strategic pillars and priorities (Scope 1 & 2) emissions by 2030 across our wholly-owned portfolio.
While 2020 saw the achievement of our 35 per Optimise • Align on long-term end of life • Minimum building design cent emission intensity reduction from 2009 capital plans standards for major baseline target, our future net zero emissions asset • Implement LED lighting across redevelopments commitment will continue to inform and drive efficiency the portfolio • Continual research and our strategy to continually reduce emissions • Implement energy analytics development into low emissions and demonstrate our commitment to operate a alerting and centralised building technology resilient and sustainable business. management In 2020 we continued to develop our Net Zero strategy and commenced projects which are focused on optimising our asset efficiency. This includes LED lighting installation, adding a further five Westfield Living Centres to Renewable • Evaluate and roll-out of on-site • Continual research and participate in our Next Gen Living Centres solar opportunities development into new project, and the development of an enhanced generation • Battery storage / demand generation technology chiller risk assessment tool to inform our capital management planning model. sources In 2021 we will develop long-term asset optimisation plans for each of our 42 Living Centres which will map out a journey to net zero emissions by 2030 and outline the commercially viable options to achieve this. Residual • Continue to monitor off-site See our case study: Reducing energy use by renewable energy procurement optimising our building management systems emissions opportunities page 35
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OUR ENVIRONMENTAL IMPACT CASE STUDY
Victorian LED lighting upgrade.
Energy and greenhouse gas emissions During the pandemic, while our Victorian centre car parks operated at a reduced capacity, we took the opportunity to complete a large-scale LED upgrade. Our focus across 2020 was on the optimisation of asset efficiency, In total, we replaced approximately 12,000 fixtures across our Westfield a key strategic pillar of our net zero emissions commitment. Doncaster, Westfield Geelong, Westfield Airport West, Westfield Fountain Gate and Westfield Plenty Valley car parks. This LED upgrade means our car park lighting is now fully responsive, with in-built motion sensors ensuring the lighting is only on when it’s needed. In 2020, our portfolio emitted 237,821 tonnes We commenced Phase 2 of our Energy Analytics This lighting upgrade project has delivered approximately 4,203 MWh of carbon emissions for Scope 1 and 2, with and Building Management Systems (BMS) savings year on year, equivalent of the annual energy consumption of 642 electricity representing 93 per cent of total initiative under our Next Gen Living Centres average Australian households*. Scope 1 and 2 emissions. This was a 12.5 per cent project following the success of Phase 1. We reduction on 2019. have now deployed this at 11 centres across our Given the projected energy savings, the cost savings are also expected to be significant and thanks to the Victorian Government’s Energy Efficiency We reduced our energy use by 10 per cent from Australian portfolio. Our Next Gen Living Centres Target scheme, cost to the business was minimal. 2019 of which 4 per cent was considered to be section showcases this project and the benefits it continued asset operational efficiency. As a result has delivered to our business. Feedback was overwhelmingly positive with retailers at Westfield Airport West commenting the centre is much lighter and brighter; a more we achieved our target to reduce our emissions See our case study: Reducing energy use by intensity by 35 per cent by 2025, portfolio-wide optimising our building management systems appealing place to be. page 35 (compared with our 2009 baseline). But the most notable feedback came from the broader community. Our focus across 2020 was on the optimisation For effective measurement of our performance, The previously always-on lighting in our five-storey Westfield Doncaster of asset efficiency, a key strategic pillar of our net we continued to track our energy emissions car park had been the subject of complaints by some residents in a zero emissions commitment. The resilience of our reduction and intensity performance through our nearby residential tower block. Facilities teams was evident as we maintained NABERs Energy ratings. In 2020 we achieved The LED upgrade has received an this focus during the disruption of COVID-19 and a (non certified) portfolio average of 4.4 stars overwhelmingly positive response, partial centre operations. (excluding COVID impacts), with 81 per cent of with the tower owners’ corporation confirming it has solved the An example of this was the implementation of an our Australian Westfield Living Centres tracking problem completely. LED upgrade project across our Westfield Airport at 4 stars and above and 65 per cent tracking at West, Westfield Doncaster, Westfield Geelong, 4.5 stars and above. Our 2020 portfolio average Read more Westfield Fountain Gate and Westfield Plenty rating is an improvement from 4.13 stars in 2019. Valley centres in Victoria.
LED team: from left: Lockland McLeod, Rob Levickis, Matthew *https://www.yourhome.gov.au/energy Vasilevski, Oliver Madden, Justin Taylor
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OUR ENVIRONMENTAL IMPACT
CASE STUDY Next Gen Living Centres Reducing energy use by optimising our Our Next Gen Living Centres project was implemented to harness smart building management systems. technologies, big data and learning algorithms to make our centres safer, Our Next Gen Living Centres project implemented a new more comfortable and operationally efficient. analytics platform that uses smart technologies, big data and learning algorithms across 11 Westfield Living Centres.
Our first initiative under this project was Throughout 2020, our Next Gen Living Centres Asset Operations Analyst, Anthony Pantilas said: “The focused on energy optimisation of our building reduced their electricity usage by 10,370 MWh Analytics Platform reviews around 60,000 individual management systems. By centrally analysing compared to 2019, with every centre achieving data points from all 11 centres every 15 minutes. It then big data from multiple sources and our Living above our 7.5 per cent reduction target. These automatically generates insights to optimise the building Centres at once we are able to generate energy savings are the equivalent of the annual energy systems and realise energy savings. Having access to this big insights that can be actioned remotely or consumption of over 1,500 average Australian data and analysing it in such minute detail over time provides communicated easily to Facilities teams onsite. households*. opportunities that would otherwise not be available.” The new technology allows for fine tuning of *https://www.yourhome.gov.au/energy At one centre, it highlighted that the location of temperature plant and equipment for improved performance sensors meant they were inaccurate at critical times of the as well as helping improve the internal day. That one inaccurate data point was impacting how the environment for customers, our people and building systems were operating, making them less efficient. retail partners. By moving those critical sensors the data is accurate, which Following the successful roll out of six Next Gen has improved the internal comfort for our customers, people Westfield Living Centres across our portfolio in and retail partners, and saved energy by improving building late 2019, a further five centres participated in system performance. Phase 2 across 2020 delivering further energy efficiency and emissions reductions to directly contribute towards achieving our target of 10,370 MWh saved in electricity usage net zero emissions across our wholly-owned portfolio by 2030.
Next Generation Living Centre team. Back left: Philip Yang, Anthony Pantilas, Varun Nair. Front left: John Durrant, Garry Zhong
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OUR ENVIRONMENTAL IMPACT CASE STUDY
Waste
We increased our waste recovery from operations from 49 per cent to 53 per cent*.
While the impacts of partial operations (pre-COVID-19) to 30 tonnes towards the end The team at Westfield Carousel has closed the loop contributed to the reduction of total operational of the year. on tonnes of valuable, nutrient-rich food waste, waste, our continued focus during 2020 on With the help of a dedicated cleaning team member organics recovery meant these volumes transforming it into high-grade compost that is being to support their Retailer Engagement Program, remained relatively stable. Westfield Kotara was collecting approximately 10 offered free-of-charge to retail partners, centre team When restrictions eased, we took the opportunity tonnes per month in early 2020. By June due to members and local community groups, to boost the to re-engage with our restaurant and fast food an increased focus by cleaning teams on hygiene fertility of their own gardens. retail partners across many of our centres and and regular cleaning of high-touch customer points provided support to enhance their food waste throughout the centre, collections had dropped The project started with a Having now onboarded the majority separation process and increase food waste to 1 tonne per month. The Westfield Kotara team volunteer trial of five retail partners of food retailers to the program, recovery and diversion from landfill. recognised this and provided additional retailer who were passionate about including a landscaping company support themselves and reinvigorated the Retailer We found that the key to successfully managing food waste better. Since which recycles all organic garden Engagement Program. Through their efforts, they implementing new food recovery and diversion the successful pilot, the team waste across the site, the team increased the centre’s organic collections to over 10 systems was our engagement with our has introduced an organics pail has seen a 50 per cent increase in tonnes per month by the end of the year. retail partners including ensuring we were collection service, with dedicated waste diversion from an average of communicating in their preferred language, Our learnings from these Westfield Living Centres team members delivering empty 11.3 tonnes per month across 2019 providing small group training and providing the were incorporated into a National Guidance pails and collecting full pails for to achieve over 17 tonnes in the equipment necessary to deliver efficiencies to document for organics recovery, which will be our retail partners. The collection month of December 2020. their practices. rolled out across all centres in 2021 to achieve service has allowed the team Read more Notably, Westfield Carousel saw a 50 per cent consistency as we continue to work towards our to expand the Organic Waste increase in waste diversion from November 2025 waste recovery from operations target of 75 Recycling Program centre-wide. 2019 to December 2020. Westfield Eastgardens’ per cent. food recovery rose from an average of 12 tonnes *It is acknowledged that of the 4 per cent recovery, 1 per cent was per month in the first three months of 2020 recycled by Scentre Group in VIC but due to changes in waste industry restrictions outside of Scentre Group’s control it was not Westfield Carousel from left: Betty Larsen – Millennium, Dan Fleming – Scentre Group, John Beckett – able to be recycled by our third party providers. Scentre Group, Ben McHattie – Scentre Group, Tshewang Dendup – Millennium
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OUR ENVIRONMENTAL IMPACT CASE STUDY
Smart water meters and real time data deliver Water significant water and business cost savings. In 2020, we completed a project to install smart meters on all In 2020, we reduced our water use by 19 per cent. main flow gate water meters in our Westfield Living Centres. With the smart meters installed, our facilities teams now receive real time data about water usage and variances via our Environmental Data Reporting Platform. We verified this data as being 95 per cent accurate and as such it informs and drives daily performance improvements. Our long-term strategic focus continues to be In 2021 we will be focused on retail partner In addition, we piloted a data insights and notification to reduce water intensity across our portfolio by engagement to reduce our centre baseflows. program called AWARE, which delivers actionable insights for deploying smart metering, actioning accurate A national guidance document will be prepared each centre, notably the centre’s baseflow (the litres of water data insights, enhancing retailer engagement which will be used by our facilities maintenance used per minute). and evaluating opportunities for water teams to assist out retail partners to minimise harvesting systems. In 2020, we reduced our their water use and report any issues Access to this combined data in real time, has assisted our water use by 19 per cent. While the majority of expediently to our centre support team. facilities teams in the identification of leaks and losses within these savings are considered to be COVID-19 much shorter periods of time than in the past, in addition to impact related, we continued implementation of alerting centres when their base flow is considered to be smart metering and real-time data insights. higher than our average centre. Over the course of 2020 these insights have assisted in saving around 50,000 litres of We completed a project to install smart meters water loss. on all main flow gate water meters in every Westfield Living Centre. The meters continue to Our Westfield Warringah Mall Facilities Manager, Tim Parker deliver significant savings to the business with said: “In the past we would have relied on monthly water use leaks and losses in our systems being detected estimates and water utility invoices to inform water use trends and rectified quickly. and subsequent action. Having access to real time data allows us to swiftly respond, identify the issues and rectify In addition, with enhanced accuracy of it as quickly as possible. Having smart technology results water data, we implemented a weekly water in water loss via leaks and losses being actioned in shorter report which delivered increased operational timelines. It also allows us to focus on improving our water accountability at a centre level, collaboration management practices to reduce our overall usage.” at a regional level and sharing of water use reduction success stories across the portfolio. Read more
Westfield Newmarket skypool
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OUR ENVIRONMENTAL IMPACT
Climate resilience
This year we have enhanced our climate-related disclosures across our annual reporting suite.
We have disclosed our performance against a change in the likelihood of risks occurring so -4.6% -3.6% -12.6% the Taskforce for Climate-related Financial that risks and opportunities can be monitored Disclosures (TCFD) in annual investor surveys and mitigation measures adjusted as required. including CDP since 2018. We have used scenario analysis to identify We have started to integrate enhanced climate climate-related risks and opportunities. Physical disclosures into our Annual Financial Report risks were identified under a 4 degree scenario (page 16 and pages 23-24), as well as this built upon the global outcomes which may document, outlining risks and opportunities occur under RCP8.5. Transition risks were identified as part of our scenario analysis work. identified under a 1.5 and 2 degree or below scenario which has been developed based on the narrative of the Intergovernmental Panel on Climate related risks and opportunities Climate Change, UN Principles for Responsible In undertaking our process to identify and Investment, Inevitable Policy Response and 2017 2018 2019 2020 understand the climate-related risks and the International Energy Agency, Sustainable 272,051 237,821 opportunities which may impact our business Development Scenario. 295,831 282,342 over the short (<1 year), medium (1-5 years) The table on pages 39-40 provides a more Scentre Group total Scope 1 and 2 CO2 emissions by year and long (5-30 years) term we engaged with detailed summary of the climate-related risks key internal stakeholders and had external and opportunities assessed as part of our physical risk assessments complete over internal stakeholder engagement and external selected assets. We acknowledge that the risks risk assessment, including a description and opportunities identified may change over of the risk or opportunity, our approach to time as a result of shifts in global geopolitical, risk management and/or business strategy economic, and environmental factors. As part integration and our assessment of current of our ongoing risk management processes we residual risk impact. will seek to define the signposts which indicate
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OUR ENVIRONMENTAL IMPACT
Climate related risks and opportunities
Risk or opportunity Relevant Time horizons short, Risk or opportunity description Approach to risk management and business Current assessment type scenario medium and long strategy integration of residual risk term <1 year, 1-5 and positioning of years, 5-30 years opportunity
RISK Emerging Transitional Medium to long term We anticipate, based on current Australian carbon markets Reduced asset energy use combined with continued Impact considered to regulation - Carbon modelling, that a carbon price of $30/tonne CO2-e, is likely to be investment in renewable energy projects. be low pricing mechanisms imposed in Australia in the medium to longer term. Maximising the energy efficiency of our assets is embedded - Increased indirect It is expected that the Group will receive no or limited funding to in our facilities management culture. (operating) costs offset these costs. Our continued deployment of on-site solar has and will The impact of this on our business may be that the cost of energy continue to reduce our dependence on grid electricity and for the operation of our Living Centres will increase. The cost of therefore reduce scope 2 emissions. carbon intensive building materials will also increase the cost associated with the design and construction of our assets, which in turn may directly impact our Design and Construction business.
RISK Market Changing Transitional Long term Scentre Group's Purpose is: creating extraordinary places Core to our strategy is retail partner and customer Impact considered to customer behaviour - connecting and enriching communities. engagement and accessing market insights to ensure we be low Decreased revenues In 2020 we had more than 450 million customer visits to our stay relevant for customer needs. due to reduced Westfield Living Centres. Our Strategic Analytics team includes research managers demand for products for analytics, insights and research who are responsible and services We need to be receptive to new consumer preferences driven by sustainability and / or climate related matters. for completing both customer and retail surveys to monitor changes in consumer and retailer preferences. We offer green power to retail partners who request this. We support our retail partners with waste recovery and recycling opportunities.
RISK Acute physical Physical Medium to long term Physical damage to buildings and components of buildings, loss Assessment of all 42 Living Centres to climate risk Impact considered to climate change impacts. of income and potential harm to building occupiers is a risk we vulnerability. be low Increased severity and insure against. Development of physical climate risk rating tool for portfolio. frequency of extreme We acknowledge that extreme weather events and climate Preparation of climate adaptation plans for ‘at higher risk’ weather events such change can increase these risks to our assets over time and assets. as cyclones and floods hence the insurable costs. impacting assets and In 2020 we witnessed extreme weather events causing physical increasing insurance damage to centres in Perth Western Australia, Sydney NSW and premiums New Zealand.
RISK Reputation & Transitional Medium term Investor preferences driven by ESG and / or climate related Our strategy is to deliver relevant information to help Impact considered to shifts in investment matters. stakeholders, and particularly investors, to make informed be low decisions Future ESG risk premiums on our share price by equity investors. decisions as to the Group’s management of climate related financial risks and opportunities. We do this through: Our top 30 investors, over 40 per cent are committed to TCFD disclosures. • Direct investor engagement • Benchmark ESG performance surveys • Annual Reporting suites • Disclosure of our climate related risk in accordance with the TCFD recommendations. scentregroup.com/about-us/sustainability PAGE 39 Responsible Business Report 2020
OUR ENVIRONMENTAL IMPACT
Risk or opportunity Relevant Time horizons short, Risk or opportunity description Approach to risk management and business Current assessment type scenario medium and long strategy integration of residual risk term <1 year, 1-5 and positioning of years, 5-30 years opportunity
OPPORTUNITY Shift Transitional Short to medium term A shift toward decentralised energy generation has been seen Renewable energy sourcing is a key pillar of our net zero Opportunity already toward decentralized across the markets in which we operate. emissions target. embedded into energy generation We saw this as an opportunity to focus on and invest in new We continue to consider on-site solar as part of every major strategy. renewable energy technologies such as on-site photovoltaic redevelopment. solar. We continue to actively assess a broader roll-out across Rooftop and car park solar structures are considered as part existing assets engaging with our joint assets. of every major redevelopment of our assets. We have carried In 2021 we will continue to evaluate the opportunity for out installations over the last three years at: Westfield Marion, additional solar array projects. Westfield Kotara, Westfield Carousel, Westfield Plenty Valley and Westfield Coomera.
OPPORTUNITY Access Transitional Medium term Building out our capital investment plan to achieve net zero Our track record of emission intensity reduction (37 per cent Strong opportunity in to new markets with emissions target. reduction since 2009) and our forward looking NABERs existing markets Increased access to Evaluation of lower cost debt funding options that will help 4.5 and net zero future targets place us in a strong position. capital underpin our Net Zero emissions strategy. To evaluate green finance opportunities for our carbon Investor engagement on Green/Climate bonds and other reduction capital initiatives out to 2030 to meet our net zero sustainability linked debt options. emissions target.
OPPORTUNITY Use of Transitional Short to medium term We identified an opportunity to improve energy efficiency Asset efficiency optimisation is the first pillar in our Net Zero Opportunity lower-emission sources across selected assets within our portfolio by implementing a emissions strategy. embedded into of energy Next Generation HVAC data analytics and alerting model with We have already moved into Phase 2 implementation of strategy centralised 24/7 energy monitoring. our Next Gen Living Centre building management system We used COVID-19 partial centre operations and reduction in analytics initiative with energy savings on average 7.5 per customer visits to accelerate LED lighting projects across our cent of total asset energy use when deployed. Victorian portfolio. We delivered six LED projects in 2020 which will reduce
our emissions by 5,000 tonnes of CO2 and plan to have all centres fully LED by 2024.
See our case study: Victorian LED lighting upgrade on page 34
See our case study: Reducing energy use by optimising building management systems on page 35
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OUR ENVIRONMENTAL IMPACT
Roadmap to enhance alignment with the TCFD recommendations
Completed work Immediate priority Next Steps
Development of Physical and Gap analysis Risk and opportunity Target setting and Strategy Ongoing detailed climate scenarios transitional risk and roadmap signposting KPI development considerations disclosure aligned to Describe climate & opportunity development Determine signposts Develop additional Consider the risks the recommendations scenarios and assess identification Review current of change for each metrics and targets and opportunities of the TCFD the impact of those Identify climate- alignment with the climate-related impact. to assess climate- identified and their Develop detailed scenarios on the related risks and TCFD and determine Implement ongoing related risks and impact on broader TCFD disclosures continued operation opportunities which next steps to align monitoring of impact opportunities and business strategy. within a stand-alone of our business. may impact both with better practice ensure they are risk ratings. Where appropriate, report, and improve operations and the reporting. supported by science embed climate- reporting within supply chain. and aligned to related considerations financial statements company strategies. Using defined and into strategic decision to consider climate- described scenarios making. related impacts. assess the likelihood of risks materialising and how material these risks may be to our business or supply chains.
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OUR ENVIRONMENTAL IMPACT
In 2021 we will continue to focus on our disclosure road map (1-2 years) to address any gaps between current reporting and the TCFD recommended disclosures.
Achievements to date Current program of work Next Steps
Governance Establishment of Responsible Business Working Increased active governance of climate-related Consideration of climate-related impacts on broader Group (RBG) impacts on broader business strategy business strategy Ongoing climate-related impact management processes developed
Strategy Initial physical assessment conducted to assess Broader consideration of climate-related impacts Further climate scenario analysis to assess changing site-specific resilience to climate change on our business strategy global trends and factors Scenario assessment completed to identify Deeper understanding of the impact of climate- transition risks related impacts on financial planning, including Impact of risks and opportunities defined across long-term consideration of risk controls and time horizons mitigation measures
Risk Climate risks are considered as part of broader Assessment of physical risks at the asset level for Identification of signposts to monitor changes in risk Management Enterprise Risk Management high risk assets and opportunity likelihood Quantification of risks and opportunities
Metrics and We set our net zero by 2030 target to reduce our Identify signposts to monitor change in likelihood Identify appropriate owners for monitoring climate Targets environmental impact and reduce exposure to of climate-related impacts occurring risk signposts transition risks Establish indicator to measure performance in controlling or mitigating short-term risks
Westfield Newmarket
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Our economic performance 2020 was a challenging year and our team adapted to the conditions, leading the industry and our business. We were proactive and deliberate in the decisions we made so that long-term ramifications were considered. Our business fundamentals remain strong and our strategy, focused on the customer, positions Scentre Group for long-term growth.
Profit, FFO and the Statutory result are each Our financial performance $million 6 months to 6 months to Growth % 12 months to after expensing an Expected Credit Charge 30 Jun 2020 31 Dec 2020 31 Dec 2020 Early into COVID-19, we focused (ECC) of ($304) million related to the financial impact of COVID-19 on rental income. The ECC Receipts in the course of $1,059.4 $1,297.5 22.5% $2,356.9 operations (incl GST) on obtaining additional funding so was $232 million in the first half and $72 million that we were in a strong financial in the second half of the year. Net Operating Cashflow $260.7 $510.2 95.7% $770.9 Surplus position to see us through and We achieved gross operating cash inflow of Operating Profit $360.8 $402.6 11.6% $763.4 beyond the volatile period. $2,357 million and net operating cashflows (after interest, overheads and tax) grew by 95.7 Cents per security 6.94c 7.76c 14.71c per cent in the second half of the year resulting We did not receive any financial support from Distribution per security - 7.00c 7.00c the Australian or New Zealand governments, in $771 million for the 12-month period. including the JobKeeper program. We paused Whilst uncertainty remains in 2021, subject to our security buyback program and announced no material change in conditions, we expect to we would not be paying an interim distribution distribute at least 14.00 cents per security for at the half year. 2021. The Distribution is expected to continue Operating Profit for the 2020 financial year was to grow in future years. We plan to retain $763.4 million (14.71 cents per security) and earnings to cover operating and leasing capital Funds From Operations (FFO) was $766.1 million expenditure, fund strategic initiatives and (14.76 cents per security). reduce net debt. The Statutory result for the 12-month period, Demand for space across Westfield Living inclusive of unrealised non-cash items, was a Centres remains strong with the portfolio 98.5 loss of ($3,732) million. The result includes a per cent leased at 31 December 2020. We reduction in property valuations of ($4,254) completed 2,625 lease deals during the year, including 848 new merchants. million during the 12-month period. Operating Westfield Knox Lyrebird Bar pop up in the Ozone Park in designed to drive night time economy and support retail partners increase turnover
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OUR ECONOMIC PERFORMANCE
Capital management
Our capital management actions throughout the year were focused on strengthening our financial position and preserving value for the long term by not raising equity from our securityholders.
During 2020, the Group executed $10.1 billion of new and extended funding, including $3.6 billion of bank facilities, $2.4 billion of long- term bonds and $4.1 billion of subordinated notes, further diversifying the Group’s sources of capital, strengthening the Group’s credit metrics and protecting securityholder value. The Group now has available liquidity of $6.9 billion, sufficient to cover all debt maturities to early 2024. Interest cover for the period was 3.1 times and balance sheet gearing at 31 December 2020 was 27.7 per cent. The Group maintains “A” grade credit ratings by S&P, Fitch and Moody’s.
Westfield Bondi Junction
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OUR ECONOMIC PERFORMANCE Zero financial support received from the Australian or New Zealand Governments, including the Enabling the economic recovery Jobkeeper program
Approximately 20 million people live within close proximity to a Westfield Living Centre.
Our platform of 42 Westfield Living Centres photography for our customers and worked with Westfield Bondi Junction includes more than 3,600 retail and brand the Shopping Council of Australia to develop the partners and 12,000 outlets. Our centres enable relevant health and safety protocols to enable employment and economic activity in our this experience to meet the latest health advice. communities, which is why it was an important Customer visits during the fourth quarter of outcome to remain over every day throughout 2020 were high and on par with the comparative the year. period in 2019 at an average of 46 million visits per month. During 2020, we had more than 450 million customer visits, including an average of 46 million To support the economic recovery through per month during the fourth quarter. Customers people returning to their places of work, we spent more than $22 billion with our retail led by example, welcoming our people back to partners and enjoyed close to one and a half their primary workplaces from mid-May, with hours of their time on each visit. This highlights COVID-Safe plans in place. Scentre Group also that social connection and engagement is supported the Property Council of Australia’s integral to the daily lives of our customers and “We’re ready to welcome you back” advocacy the communities in which we operate. campaign which highlighted the health and We committed to delivering a COVID-Safe, safety actions the property industry has festive and enjoyable experience for our undertaken to ensure CBD workers felt assured customers during the busiest period of the retail of health and safety standards. calendar. In place of our usual Black Friday sales, we supported our retail partners with Westfield Week of Offers, a week-long sales event with physical distancing and COVID-Safe protocols in place. We offered COVID-Safe Santa
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OUR ECONOMIC PERFORMANCE 2,456 agreements with our SME retail partners reached under the code Industry leadership
Supporting small to medium sized retail partners as well as the long-term viability of our local • making alcohol-based hand sanitiser Throughout 2020, we made decisions for offer. Under the Code, we reached agreements available at key locations such as store the long-term which also acknowledged our with 2,456 of our SME retail partners. entrances, building entrances, customer broader responsibility as a leading Australian service desks and food courts COVID-19 Retail Recovery Protocol company and brand. Our CEO and senior • frequent cleaning and disinfecting of leaders engaged with government at all levels The health and safety of our customers, retail regularly used objects and hard surfaces to ensure our business and industry was partners and people has been our priority (eg payment registers, ETFPOS machines, represented in relevant policy discussions in throughout 2020. As members of the Shopping hand-rails, bathroom door handles, shelves, response to COVID-19. Centre Council of Australia, we acted early shopping trolleys, counters and benches, and worked co-operatively with stakeholders, We recognised the cash flow shock for small to food-court tables, staff-rooms) and other key including the national retail groups, to develop medium sized (SME) retailers would be severe hygiene measures (eg waste disposal) the COVID-19 Retail Recovery Protocol (the and led the industry response as part of our • facilitating and encouraging physical Protocol) which guided the operational health membership of the Shopping Centre Council distancing and public gathering limits in and safety protocols implemented across of Australia to develop a voluntary Code of accordance with Government directions. the industry. Conduct (Code) to navigate the period and Actions could include signage ‘reminders’, guide our commercial arrangements. This was The Shopping Centre Council of Australia, one-way queueing, ground markings (eg later mandated by the Federal Government and National Retail Association, Shop Distributive stickers or tape) for customer queues then each state and territory legislated it. As an and Allied Employees Association, Pharmacy • daily check-ins with staff on their wellbeing, industry, we have provided more than $2 billion Guild of Australia and Australian Retailers ensure staff and contractors are properly in direct rental relief to our small retail partners, Association jointly developed and launched the trained and have access to relevant a responsibility no other industry has been protocol on 1 May 2020 to provide a consistent, information and personal protective asked to bear. practical and public-health led guide for equipment. shopping centres and retailers. We prioritised the support of our SME retail partners because we knew it was the right The Protocol outlines 10 key actions for retailers thing to do for their short-term sustainability, and shopping centre including:
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OUR ECONOMIC PERFORMANCE
Supporting the next generation of industry leaders – Frank Lowy Fellowship We sponsor an industry initiative of the Shopping Centre Council of Australia (SCCA) to foster the development of the next generation of industry leaders. The annual Frank Lowy Fellowship is named in recognition of our founder Sir Frank Lowy AC and his contribution to the Australian shopping centre industry. In recognition of the industry-leading knowledge and expertise we have within our team, four team members were nominated for the Frank Lowy Fellowship in 2020. This year there was a record number of nominations, reflecting the range of technological and digital solutions designed to protect and benefit shopping centres and retailers throughout the COVID-19 pandemic. For the first time since the fellowship was established in 2016, the winner was a Scentre Group employee – Carl Woodward. He was nominated for his quick identification of the impact that public health restrictions would have on retailers’ ability to deliver their customers what they needed – instant access to essential goods without the delay of delivery. He led a team to rapidly deploy Westfield Direct, a digital platform that allowed customers to purchase from multiple shopping centre retailers and receive contactless delivery directly to their car Our CEO Peter Allen, also Chairman of the Shopping Centre Council of Australia, and the 2020 Frank Lowy Fellowship recipient Carl Woodward in a single trip.
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OUR ECONOMIC PERFORMANCE
Developments
During the year, we completed projects that were underway at Westfield Doncaster in Melbourne, delivering a rooftop dining precinct and 14 new restaurants.
We also completed projects at Westfield Belconnen in Canberra, Westfield Hornsby in Sydney and Westfield Carindale in Brisbane. In December, we were appointed by Cbus Property to design and construct the residential and commercial tower on the site of the former David Jones menswear store on the corner of Market and Castlereagh streets in Sydney’s CBD. We have a retail development pipeline in excess of $3 billion and potential opportunities for alternative use developments in excess of $1.5 billion. We continue to adapt our Westfield Living Centres for our customers ever changing needs. Our skills and capabilities as an organisation to curate the right mix of products, services and experiences is improving as we deepen our knowledge of our customers. Strategic developments will continue to be a driver of growth for the Group. Pre-development work on future developments remains underway.
Westfield Doncaster
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OUR ECONOMIC PERFORMANCE $1.34 billion total spend with suppliers in 2020 AU: 83% NZ: 15.7% Supply chain management US: 0.7% Other*: 0.6%
*Europe, Philippines, Singapore, We are committed to developing and operating our Westfield Living Centre portfolio in such a way as to China, Central America, Israel respect the dignity, wellbeing and human rights of our people, contractors and the communities in which we operate. This is reflected in our approach to managing our supply chain.
We are a vertically integrated business with the Our expenditure on labour services increased in Supplier Code of Conduct Westfield Miranda COVID-Safe protocols internal capability to develop, design, construct, 2020 as we implemented COVID-Safe protocols Through our Supplier Code of Conduct, we seek operate and market our Westfield Living Centre to keep our Westfield Living Centres open and to encourage and, where appropriate, mandate portfolio. Our supply chain includes a large range safe for our communities and customers. requirements to help us and our suppliers in of organisations and industry sectors. From March, we updated our health and safety conducting business in a safe, accountable and Scentre Group top 5 categories protocols, maintaining the highest standards equitable manner. It sets out Scentre Group’s by spend in 2020: of cleanliness and hygiene so our customers expectations as to how our suppliers will address: continued to feel safe and confident when they 1. Construction / Maintenance • diversity and inclusion visited us. This included increased frequency of 2. Government / Regulatory cleaning customer touch points and, at a time • workplace health and safety
3. Labour Services (Cleaning and Security) when it was difficult to source, purchasing over • the environment 2,000 litres of sanitiser per week and making it • labour and employment practices, including 4. Utilities (Water / Energy / Waste / available to customers throughout our Westfield Telecommunications) ensuring there are no instances of modern Living Centres. slavery in a supplier’s operations and supply 5. Professional Services (Technology / Marketing / Management) Our expenditure with suppliers in the chain Development, Design and Construction • risk management categories is cyclical and depends on our • supply chain management. development program. In 2020, expenditure with suppliers in New Zealand reduced as Our suppliers are required to observe this code we completed our Westfield Newmarket in delivering products or services to us. development. Supplier Code Conduct
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OUR ECONOMIC PERFORMANCE First Modern Slavery Statement developed setting out how we assess and address the risks of modern slavery in Supply chain transparency Modern slavery • Surveyed identified high risk suppliers to our direct operations and supply chain more comprehensively risk assess their We approach supply chain transparency not Scentre Group has a cross-functional operations and supply chain. only through our approach to supplier selection, Modern Slavery Action Group to address the contracting and onboarding, but through assessment, review and management of the Risk and assurance processes: ongoing engagement with our suppliers and risks of modern slavery occurring in our direct • Enhanced procurement, contracting their staff. This is integrated with our risk operations and supply chain, and to define our and contract management processes to management framework and the way we roadmap of actions to address these risks. specifically address the risk of modern conduct our operations with due diligence. In 2020, we worked to embed the approach slavery. Our supplier onboarding processes such led by our Modern Slavery Action Group across • Implemented a Modern Slavery Response as supplier pre-qualification through Cm3, relevant areas of our business, including in our Framework to guide our response to actual addresses work health and safety practices and risk, procurement and contract management or suspected incidents of modern slavery. modern slavery risk. processes. • Partnered with the Property Council of Audit rights are included as part of a number of Australia’s Informed 365 platform to assist Education and Training: our high risk or high spend supplier relationships, with risk review and supplier education. to ensure that we have the ability to deep dive • Launched our online modern slavery training into our suppliers’ activities where necessary. to raise awareness and educate them on the Group’s approach to the risk of modern Australian Supplier Payment Code Our Whistleblower Protection Policy encourages slavery to our procurement staff and senior the reporting of instances of unethical, unlawful We are a signatory to the Australian Supplier managers who are involved in making or improper conduct, and applies to our suppliers Payment Code, committing to paying Australian decisions which may be impacted by the risk and employees of those suppliers. It provides business suppliers within 30 days of receipt of of modern slavery. an avenue for our suppliers and their employees a correct invoice or receipt of a correct product/ to raise concerns about unethical, unlawful or • Provided training sessions by subject matter service from the supplier (whichever is later). experts for senior leaders. improper conduct potentially involving Scentre During 2020 a number of initiatives were Group, including through Scentre Whistleblower undertaken to ensure prompt payment, such Supplier engagement and due diligence: – a confidential and anonymous online portal. as increasing the frequency of payment runs. • Communicated our approach and Whistleblower Protection Policy During the year, 95 per cent of all invoices (98 expectations to our suppliers, through our per cent by value) were paid within 30 days of Supplier Code of Conduct. receiving the invoice. • Enhanced our supplier prequalification and onboarding process to better understand our suppliers, their operations and their supply chain.
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OUR ECONOMIC PERFORMANCE CASE STUDY
Our cleaning team members are an integral part of our Westfield Living Centre customer experience teams Supply Nation Our service promise: we are real people with any non-compliance documented and This year we continued to embed our commitments creating moments that matter empowers our tracked to resolution. We also run cleaning made within our Reconciliation Action Plan (RAP) for teams to deliver extraordinary experiences for team talks to focus on areas such as lost time 2019-2021. our customers every day. injuries and to gain feedback to improve our We have been a corporate member of Supply Our cleaning team members are an integral management and operational processes. We Nation since 2017 and take full advantage of this part of our Westfield Living Centre customer display information in centre management offices membership to develop our understanding of experience teams and their dedication, service and lunch rooms so that cleaning team members available Indigenous businesses and how they and effort is paramount in achieving our know how they can raise concerns. may assist our organisation expand our support of service promise. Our cleaning team members Members of our cleaning team attend and Aboriginal and Torres Strait Islander businesses. are contractors yet wear the same Westfield contribute to relevant operational team meetings We maintain regular communication with our Supply uniforms as all other operational teams so such as the daily morning huddle, monthly safety Nation Relationship Manager who also assisted in that the customer experience is seamless forum, emergency response training and regular developing our Draft Indigenous Procurement Policy and we create an inclusive team culture. toolbox talks, so that health, safety and security which establishes key objectives and commits the Our management team engage directly with matters can be discussed and resolved within the business to measurable procurement targets. cleaning team members on a daily basis and we relevant team environment. These operational During 2020, we expanded our network of Supply deliver on our service promise as one team. meetings are important for regular training and Nation businesses and entered into three new We have over 1,700 cleaning team members in keeping our cleaning team members up to date formal partnerships. We leveraged our relationship our centres with their tenure often maintained with the latest information that may inform their with existing suppliers and contractors encouraging when cleaning suppliers change. When work, and they are paid to attend. them to employ Indigenous apprentices and commencing a new contract we encourage In May 2020 a member of the cleaning team at staff and awarded more than $2.3 million to cleaning providers to retain key staff, which on Westfield Miranda was recognised in our SCG Supply Nation contractors within our design and average has been maintained at 80 per cent Heroes Awards, which are open to everyone construction business. We have also continued on rollover. Over 150 of our valued cleaning within our business, as a ‘Safety Hero’ for their negotiations with a number of key contractors team members have worked with us for more quick and present action in identifying and engaged through our National Facilities team. than 10 years. We recognise and celebrate their coming to the aid of a youth contemplating We continue to increase awareness internally so achievements across our business. self-harm. that all procurement decisions consider Aboriginal Our centre management teams support formal Modern Slavery Statement and Torres Strait Islander businesses. and informal engagement with cleaning team members about our working environments. We undertake monthly work health and safety observations to ensure that work practices are carried out safely,
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Performance data pack
The environmental, social and economic metrics reported in this Responsible Business Performance Data Pack are absolute and intensity based measures of the managed operations of Scentre Group in 2019 and 2020.
The scope of this report covers not include impacts of all Scentre Group’s assets owned, operated, and suppliers, service providers and retail partners. under the operational control of The organisational and reporting boundaries, criteria and methodologies used for each Scentre Group, including centres indicator externally assured are defined in and commercial buildings, as this report where specific organisational well as development, design and and reporting boundaries, criteria and methodologies have been applied. The construction sites, and projects following page provides an overview of the for which the Group has acted reporting boundary for each of the material as principal contractor during the issues and the inclusion of activity data from various areas of the business (internal reporting period. boundary) or activity data including data from third parties such as service providers and Scentre Group owns over half of its Westfield contractors (external boundary). Living Centre portfolio in joint venture with Scentre Group’s 2020 Responsible Business co-owners and acts as the manager. We also Performance Data Pack was developed in manage assets on behalf of other owners. alignment with the GRI sustainability reporting These managed assets are considered under guidelines, consistent with the principles of the the Group’s operational control. GRI Standards and the GRI G4 Construction and The performance of these assets is reflected Real Estate Sector Supplement. fully in this performance data pack. The report includes all operations where Scentre Group has had operational control for at least six Westfield Doncaster months of the reporting year. This report does
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Boundaries
Interpretations relating to operational Design and Construction (D&C) Application type Scope 1 Scope 2 Energy Energy boundaries emissions and level emissions emissions production consumption (CO -e) (CO -e) Retail partners’ electricity and gas consumption: Methodology for collation and calculation of 2 2 Scentre Group has adopted the position that Scentre Group D&C estimated usage: 1. Amount for a 3 kt or less 3 kt or less 30 Tj or less 30 Tj or less facility individual tenancies within Westfield Living Centres are treated as separate facilities Emissions and energy 2. Amount of the 12 kt or less 12 kt or less 120 Tj or less 120 Tj or less and will not be included in the calculations Group’s total for Emissions and energy from D&C facilities is all facilities of the of Scentre Group’s Scope 1 and Scope 2 estimated in accordance with regulation 4.26 of corporation greenhouse gas (GHG) emissions. the NGER Regulations, ‘Reporting percentages 3. Percentage of the Less than 5% Less than 5% Less than 5% Less than 5% Electricity and gas on-sell: Scentre Group of emissions and energy’. This regulation total amount for the of scope 1 of scope 1 has treated energy and gas purchased from is permitted to be applied providing that all corporation’s group and scope 2 and scope 2 of facilities emissions emissions a retail partner and on-sold to retail partners thresholds in relation to (1) left and all thresholds (sub-metered and calibrated to a measurement at either (2) or (3) are met. requirement) as being outside the operational control of the Group and are excluded from Scope 1 and Scope 2 GHG emissions. Centres that on-sell gas to retail partners but do not use sub-metering to calculate the tenant portion of use have been included in the reporting.
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Regulation 4.26 permits reporting entities Waste Scope 2 emissions to estimate emissions and energy using an The waste generated rate is calculated from Sources include electricity consumed in appropriate methodology, which does not need a sample of D&C projects undertaken every Westfield Living Centre common areas, D&C to be in accordance with any specific method or two years with 2018 as the bare data where we sites, leased areas in commercial buildings for criteria mentioned in the NGER Measurement have the total cost and relevant activity data. the purposes of Scentre Group administrative Determination. Emissions and energy from D&C The ratio for waste disposal is defined in terms activities and common areas of commercial facilities are within the required thresholds set of the source category units per thousand buildings that are not tenanted by the Group but out above, and as a result regulation 4.26 has dollars spent (units/$’000). This ratio is then where we have operational control. been applied to estimate GHG emissions and extrapolated to the rest of D&C facilities based energy from these facilities. on the total amount spent during the reporting Scope 3 emissions This rate is calculated for each emission source period. Sources include electricity, natural gas and from a sample of D&C projects undertaken fuel (stationary and transport) transmission every two years or when available (2018 has Organisational boundaries for operations and distribution losses, employee commute been used for 2020 Responsible Business emissions, solid waste disposal to landfill Report), for which the total cost as well as Scentre Group has adopted the Operational (Living Centre operations only), air travel, taxi specific activity data are available. A ratio for Control approach to the calculation of travel, mileage and car hire. Scope 3 emissions each source category (ie fuel, electricity) is emissions. Assets in New Zealand are included factors for landfill, electricity, natural gas, defined in terms of the source category units using the same approach. transport fuels and non-transport fuels have per thousand dollars spent (units/$’000). This been obtained from the respective country’s ratio is then extrapolated to the rest of D&C Scope 1 emissions published Emissions Factors (Australia facilities based on the total amount spent during Sources include the consumption of natural gas, applies the Clean Energy Regulator’s National the reporting period. transport fuels combusted by Scentre Group’s Greenhouse Accounts Factors, September controlled vehicles and non-transport fuels 2020. New Zealand applies New Zealand For example: A sample of projects in 2018 used on site (including D&C sites), the release Ministry for the Environment 2020 — A guide consumed about 2.2439 kWh/$’000. The of refrigerants from air conditioning units and for organisations). Air travel, car hire, taxi travel, amount of electricity used for a centre that the consumption of natural gas for heating and reimbursed mileage, and employee commute invested $827,300 during the reporting period generation of electricity at our Sydney tri- emission factors have been obtained from the is estimated as: 2.2439 kWh/$’000 x $827,300 generation plant. Department for Environment, Food & Rural x 0.001=1,856 kWh. Affairs Emissions Factors excel file for 2020 for all Australian Centres, where available the New Zealand Ministry factors are applied to New Natural gas consumption for D&C projects is Zealand centres. estimated to be immaterial and therefore no gas usage was reported.
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Waste Westfield Coomera We report on whole of building waste generation, which includes waste generated by our retail partners, with the exception of majors, who report separately on their generated waste.
Water Our reporting scope for water is based on whole building water consumption, which includes water consumed by our retail partners, as well as water consumption in common mall areas. Reported water consumption includes both potable water from municipal supplies, as well as rainwater harvested and groundwater. Our water intensity is calculated based on total water consumption over the total GLA.
Energy production Our energy production includes electricity generated by our Sydney tri-generation plant and our solar systems at Marion (SA), Kotara (NSW), Plenty Valley (VIC), Carousel (WA) and Coomera (QLD).
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Data sources Westfield Warringah Mall
Transport fuels Water Annual actual information from fleet reports and Actual data obtained from utility providers and expense reports. smart meter usage applied where invoiced actuals are not available. Where smart meter Stationary fuels data is also unavailable, extrapolated data is Annual actual quantities are collated on sample used (minority of sites). of centres based on contractor and third-party reports, as well as actual information from Employee commute expense management reports. This sample is Survey conducted in January 2021 across all extrapolated across the Australian portfolio Australia and New Zealand employees of 2020 commute habits extrapolated. Synthetic gases Australian refrigerants based on capacities. Air travel New Zealand refrigerants based on topped up Annual actual data from travel services agent. quantities maintained for each site in 2020. SF6 actual quantities contained on each site Taxi and car hire for all units in kilograms collated by Facilities Actual data from expense management reports Managers. and car hiring agency actual data for 11 months with one month extrapolated. Natural gas Annual actual data obtained from utility Waste providers and extrapolated estimates where Actual tonnage reports from service provider. data not available.
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Our community
Table 1: Donations Table 3: Volunteer days Reporting period Amount donated ($m's) Beneficiaries Reporting period Number of days
2020 1.26 Westfield Local Heroes 2020 63* 0.50 Salvation Army Bushfire Appeal 2019 245 2019 1.19 Westfield Local Heroes 2018 383 2018 1.17 Westfield Local Heroes 2017 271
2016 369 Table 2: Workplace giving - employee giving through pre-tax salary Reporting period Employee donated SCG matched Total donation * 2020 volunteer days were severely impacted by COVID-19 restrictions. ($000's) ($000's) ($000's) Table 4: Benefits of financial contributions and in kind support provided to community 2020 90 90 180 organisations
1 2 2019 87 87 174 Reporting period Community site hours donated Gift wrapping ($000's) 2020 9,064 295 2018 96 96 192 2019 31,048 204 2017 77 77 154 1 2020 community site hours were severely impacted by COVID-19 restrictions. 2016 45 45 90 2 By providing community site space in centre to organisations for them to offer gift wrapping services to our customers at Christmas, the community organisations were able to raise this combined customer donation total
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Our people
Employee statistics Westfield Sydney team’s morning huddle Table 1: Employees by employment type and contract 2020 2019 Employment type / contract Headcount Percentage Headcount Percentage
Full Time 1,298 54% 1,567 57%
Casual 880 36% 865 32%
Part Time 199 8% 229 8%
Temporary 47 2% 79 3%
Total 2,424 100% 2,740 100%
Employees on *CBAs 3 0.1% 8 0.3%
* CBAs = Collective Bargaining Agreements / Enterprise Bargaining Agreements - notice periods and provisions for consultation and negotiation are specified in CBAs.
Table 2: Employees and contractors by employment type and country* 2020 2019 Employment Type AU NZ Total AU NZ Total
Employees 2,193 231 2,424 2,473 267 2,740
Contractors 2,135 54 2,189 2,491 1,148 3,639
Total 4,328 285 4,613 4,964 1,415 6,379
*NB: The employees and contractors above are part of our occupational health and safety management system.
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Table 3: Employee totals, new hires, departures by year, country, age group, gender and seniority 2020 2019 Category Headcount at New hires Rate of Leavers Rate of leavers Headcount at New hires Rate of Leavers Rate of leavers 31/12/20 new hires 31/12/19 new hires
Australia 2,193 499 21% 755 31% 2,473 690 25% 731 27%
New Zealand 231 81 3% 99 4% 267 143 5% 88 3%
< 30 years 819 341 14% 342 14% 925 501 18% 319 12%
30 - 50 years 1,233 192 8% 367 15% 1,390 277 10% 370 14%
+50 years 372 47 2% 145 6% 425 55 2% 130 5%
Male 1,050 237 10% 379 16% 1,204 322 12% 395 14%
Female 1,374 343 14% 475 20% 1,536 511 19% 424 15%
Senior Managers (M1 and above) 132 2 0% 20 1% 141 9 0.3% 28 1%
Managers and professionals 956 117 5% 333 14% 1,163 175 6% 330 12%
Support 1,336 461 19% 501 21% 1,436 649 24% 461 17%
Total 2,424 580 24% 854 35% 2,740 833 30% 819 30%
Casuals 880 403 17% 323 13% 865 526 19% 357 13%
Total (Excluding Casuals) 1,544 177 11% 531 34% 1,875 307 16% 462 25%
Table 4: Employee gender ratio by level of seniority Table 5: Board diversity by gender and age group 2020 2019 2020 2019 Employment type / Contract Gender Percentage Percentage Diversity type Gender Number Percentage Number Percentage
Senior Managers (M1 and above) Male 9% 9% Gender Male 7 78% 5 62.5%
Female 2% 2% Female 2 22% 3 37.5%
Managers and professionals Male 43% 47% Age group < 30 years 0 0% 0 0%
Female 37% 39% 30 - 50 years 0 0% 0 0%
Support Male 48% 44% +50 years 9 100% 8 100%
Female 61% 59%
NB: The Group’s target is to have a 40/40/20 workforce representation at each level in the organisation - 40% male, 40% female and 20% of either gender.
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Table 6: Workforce diversity Year LGBTI+ Australian Asian European NZ British Middle South Irish South Islander North Aboriginal or Eastern African American American Torres Strait Islander
2019* 11% 50% 13% 10% 7% 5% 3% 2% 1% 1% 1% 1% 1%
* Data collected via 2019 Scentre Group Employee Survey. Employees self identify with an 80% employee response rate.
Table 7: Employee benefits Emotional wellbeing Physical wellbeing Social wellbeing Financial wellbeing
Employee assistance program (emotional and Discounted gym memberships Workplace social events (team building events) Salary packaging opportunities (novated leases, laptops, mobiles) **** counselling support and additional services) On site heart health checks Flexible working arrangements Paid parental leave (18 weeks primary carer and 4 weeks secondary carer)^ Flexible working arrangements On site flu vaccinations Volunteer days: two days per annum^^ Paid superannuation whilst on unpaid parental leave for the primary carer^ Ability to purchase additional annual leave**** On site massages Collaborative spaces and kitchen hubs*** Parental leave return to work entitlements ($2,500 childcare reimbursement, Volunteer days: two days per annum^^ BUPA Corporate health insurance rates Parents at work portal^ additional 5 days personal leave)^ Sabbatical leave* Stepping Challenge Families Connect Forum (Networking and Salary continuance via AMP Corporate Super Fund^^ MATES in Construction** Flexible work hours to allow for physical Events)^ Refer great talent incentives activity Dads Connect Forum (Networking and Events)^ Training & education leave (incl. study assistance and Defence Force leave)^ Safe work practices Skin checks** Coaching support for parents returning to work^ One-on-one superannuation ‘health’ checks with AMP Quit smoking program** Annual Christmas party Qantas points for business travel retained by the individual Provision of sanitary products*** Ability to purchase additional annual leave**** Workplace banking with CBA, including private banking offer Access to showers*** Aussie Home Loan discounts Bicycle storage facilities*** Select retail offers Executive health checks SiSu Wellness Career recognition — 10, 15, 20, 25, 30, 35, 40+ years Health Station*** Accrual and continuation of long service leave during unpaid parental leave
Benefits are available to all employees except as noted below: * Permanent employees only ** Employees in design and construction sites only *** Employees in support office only **** Salaried paid permanent employees only ^ Excluding casuals and fixed term employees ^^ Excluding casuals
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Parental leave
Table 8: Total number of employees who took parental leave by gender and year 2020 2019 Gender Number Number
Male 13 13
Female 60 63
Total 73 76
Table 9: Total number of employees who returned to work after parental leave and retention by gender and year 2020 2019 Gender Number of Number of Return to work Number of Retention rate Number of Number of Return to Number of Retention rate employees – employees – rate employees (post 12 months employees – employees – work rate employees (post 12 months parental leave returned to from 2019 still returning) parental leave returned to work from 2018 still returning) ended in 2020 work after leave employed 12 ended in 2019 after leave employed 12 ended in 2020 months post ended in 2019 months post return to work return to work
Male 16 16 100% 6 75% 9 8 89% 6 86%
Female 69 48 70% 49 94% 59 52 88% 48 83%
Total 85 64 75% 55 92% 68 60 88% 54 83%
Table 10: Number and percentage of employees initiating parental leave by year 2020 2019 2018 2017 2016 2016 to 2020 Gender Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage
Employees who went on leave 73 76 80 64 66 359
Employees who returned from leave 8 11% 54 71% 69 86% 60 94% 56 85% 247 69%
Employees who terminated 4 5% 14 18% 11 14% 4 6% 10 15% 43 12%
Employees still on leave 61 84% 8 11% 0 0% 0 0% 0 0% 69 19%
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Training
Table 11: Hours devoted to training personnel by gender, seniority, function and year 2020 2019 Category Number of training hours Average hours per employee* Number of training hours Average hours per employee*
Male 8,958 8.5 6,327 4.8
Female 11,128 8.1 6,659 4.2
Senior Managers (M1 and above) 970 7.3
Managers and professionals 10,566 11.1
Support 8,550 6.4
Customer Experience 16,472 9.6 We have enhanced our disclosure in 2020 beyond gender to include training data by seniority and function. Design and Construction 738 5.3
Development and Asset Management 44 2.9
Leasing and Retail Solutions 1,023 5.7
Support Functions 1,809 4.7
* Calculated as an average across our total workforce and includes: Induction; Inclusive Leadership Programs; Diversity and Inclusion Programs for: Mental Health, Domestic and Family Violence, LGBTI+; Code of Conduct Compliance, Cyber Security, Life Safety and Business Ethics compliance programs.
Table 12: Percentage of employees receiving regular performance and career development plans by gender, seniority and year* 2020 2019 Category Gender Total number Total receiving regular performance Percentage Total number Total receiving regular performance Percentage of of employees and career development reviews of coverage of employees and career development reviews coverage
Senior Managers (M1 and above) Male 97 97 100% 105 105 100%
Female 35 35 100% 36 36 100%
Managers and professionals Male 452 452 100% 570 570 100%
Female 504 504 100% 593 593 100%
Support Male 501 182 36% 529 229 43%
Female 835 274 33% 907 342 38%
Total 2,424 1,544 64% 2,740 1,875 68%
* Figures rounded to the nearest whole number. Only permanent full-time and part-time employees participate in regular performance and career development reviews.
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Discrimination Table 15: Total group safety data - contractors
Table 13: Status of discrimination incidents by year* Contractor Data 2020 2019 2018 2020 2019 Total fatalities 0 0 0
Total number of reported incidents of discrimination 7 0 Total Class 1 (High Consequence) injuries 0 0 0
Number of incidents reviewed by the organisation 7 0 Class 1 (High Consequence) frequency rate 0 0 0
Number of remediation plans being implemented 3 0 Average lost day rate (ALDR) 5 8 6
Number of remediation plans implemented and results 3 0 Class 1 High-consequence is defined as: Non Fatal with no recovery (ie amputation), or > 6 months to recover fully to pre-injury/ illness state reviewed through routine management review processes Class 1 (High consequence) Frequency Rate = ([number of Class 1 Injuries / total hours worked] x 1,000,000) Number of incidents no longer subject to action 7 0 ALDR = total number of Lost Time Days / total number of Lost Time Injuries
* Scentre Group received and reviewed a total of 7 complaints of potential discriminatory conduct involving Scentre Group Table 16: Percentage of employees represented in formal joint management workplace health employees and/or contractors. Following investigation a total of 3 complaints were substantiated and resulted in disciplinary action being taken against Scentre Group employees / contractors. A further 4 complaints were reviewed however were found and safety committees that help monitor and advise on health and safety programs by year to not involve discriminatory conduct. All complaints involving potential discriminatory conduct are reviewed in accordance with and country Scentre Group policies and procedures and relevant incidents and remediation steps are reported to senior management and if appropriate the Board through conduct management reporting processes. 2020 2019 Country Total number Total Percentage Total number Total Percentage of employees employees representation of employees employees representation Workplace safety represented (as at 31/12/20) represented (as at 31/12/19) (as at 31/12/20) (as at 31/12/19) Table 14: Total group safety data - employees Australia 2,076 2,193 95% 2,267 2,473 92% Employee Data 2020 2019 2018
Total fatalities 0 0 0 New 231 231 100% 267 267 100% Zealand Total Class 1 (High Consquence) injuries 0 0 0 Total 2,307 2,424 95% 2,534 2,740 92% Class 1 (High Consquence) frequency rate 0 0 0
Lost time injury frequency rate (LTIFR) 3 3 3
Total recordable injury frequency rate (TRIFR) 4 8 6
Average lost day rate (ALDR) 5 4 5
Total absentee rate (%) 1.7% 2% 2%
Class 1 High-consequence is defined as: Non Fatal with no recovery (ie amputation), or > 6 months to recover fully to pre-injury/ illness state Class 1 (High consequence) Frequency Rate = ([number of Class 1 Injuries / total hours worked] x 1,000,000); LTIFR = ([number of Lost Time Injuries / total hours worked] x 1,000,000); ALDR = total number of Lost Time Days / total number of Lost Time Injuries; TRIFR = ([number of Recordable injuries / total hours worked] x 1,000,000); AR = ([total number of Absentee days / total number of days worked] x 100).
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Our environmental impact
Table 1: Direct energy consumption by primary use and year Table 2: Direct energy consumption by primary source and year 2020 2019 2020 2019 Source Type of consumption Gigajoules % Contribution Gigajoules % Contribution Source Type of consumption Gigajoules % Contribution Gigajoules % Contribution
Non- Natural gas 92,176 62% 103,533* 59% Non- Natural gas 92,176 62% 103,533 59% Renewable Renewable Non-transport fuel 21,721 15% 34,354 20% Diesel 16,751 11% 36,420 21%
combustion Fuel oil - light 9 0% 25 0% Transport fuels 2,241 1% 5,795 3% (controlled vehicles) LPG 5,976 4% 2,248 1%
Tri-gen electricity 2,638 2% 2,209 1% Petrol 1,158 1% 1,455 1%
Renewable On-site solar 29,227 20% 29,874 17% Other fuels 68 0% 0 0%
Total 148,003 100% 175,765 100% Tri-gen electricity 2,638 2% 2,209 1%
* 2019 Natural gas has been restated from 111,691GJ to 103,533GJ to correct an error in the calculation of gas used for Tri-gen. Renewable On-site solar 29,227 20% 29,874 17%
Total 148,003 100% 175,764 100%
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Table 1a: Direct energy consumption by primary use - supplementary regional breakdown by Table 3: Indirect energy consumption by primary source and year country 2020 2019 % Change Gigajoules kWh Source Type of consumption Gigajoules % Contribution Gigajoules Year on year Source Type of consumption AU NZ Total Total Non- Grid purchased 1,080,836 100% 1,204,071 (10%) Non- Natural gas 90,123 2,052 92,176 25,624,793 Renewable electricity Renewable Non-transport fuel 20,985 737 21,721 6,038,550 Total 1,080,836 100% 1,204,071 (10%)
combustion * 2019 Grid purchased electricity restated from 1,206,279 to 1,204,071 to exclude Tri-gen produced electricity incorrectly included.
Transport fuels 2,126 115 2,241 623,069 Table 3a: Indirect energy consumption by primary source - supplementary regional (controlled vehicles breakdown by country Tri-gen electricity 2,638 0 2,638 733,452 Gigajoules kWh Source Type of consumption AU NZ Total Total Renewable On-site solar 29,227 0 29,227 8,125,026 Non- Grid purchased 992,711 88,124 1,080,836 300,472,278 Total 145,099 2,904 148,003 41,144,890 Renewable electricity
Total 992,711 88,124 1,080,836 300,472,278 Table 2a: Direct energy consumption by primary source - supplementary regional breakdown by country Gigajoules kWh Energy production Source Type of consumption AU NZ Total Total
Non- Natural gas 90,123 2,052 92,176 25,624,793 Table 4: Energy production by source and year Renewable Gigajoules % Change Diesel 16,125 626 16,751 4,656,886 Source Type of generation 2020 2019 Year on year Fuel oil - light 9 1 9 2,525 Non-Renewable Tri-gen electricity 2,638 2,209 19% LPG 5,785 191 5,976 1,661,342 Renewable On-site solar 29,227 29,874 (2%) Petrol 1,128 31 1,158 321,955 Total 31,865 32,083 (1%) Other fuels 64 4 68 18,910
Tri-gen electricity 2,638 0 2,638 733,452
Renewable On-site solar 29,227 0 29,227 8,125,026
Total 145,099 2,904 148,003 41,144,890
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Table 5: Direct and indirect emissions by source and year (scope 1 and 2) Table 7: Other indirect emissions by activity and year (Scope 3) 2020 2019 2020 2019 Source Total Scope 1 and 2 % Contribution Total Scope 1 and 2 % Contribution Activity Scope 3 % Contribution Scope 3 % Contribution
(tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e)
Grid purchased 221,580 93% 254,660 94% Air travel 434 1% 2,573 3% electricity Employee commute 1,775 2% 2,141 2% Natural gas 4,755 2% 5,340 2% Natural gas 684 1% 735 1% Non-transport fuel 1,464 1% 2,388 1% combustion Grid purchased 25,646 33% 29,838 32% electricity Synthetic gases 9,865 4% 9,257 3% Taxi and car travel 71 0% 195 0% Transport fuels 156 0% 405 0% (controlled Transport fuels 8 0% 9 0% vehicles) (controlled vehicles)
Total 237,821 100% 272,051 100% Mixed waste to landfill 48,818 63% 58,905 62%
* 2019 Synthetic gases AU & NZ restated from 12,030 CO2-e to 9,257 CO2-e. This is due to a change in reporting methodology to Other (non-transport 75 0% 63 0% align to NGER guidance. fuel)
Table 6: GHG emissions by country and scope (Scope 1, 2 and 3) Total 77,512 100% 94,459 100% 2020 2019 Source Direct Indirect Other indirect Direct Indirect Other indirect Table 8: Other indirect emissions by activity and country (Scope 3) emissions emissions emissions emissions emissions emissions 2020 (tonnes CO -e) — Scope 1 — Scope 2 — Scope 3 — Scope 1 — Scope 2 — Scope 3 2
(tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e) (tonnes CO2-e) Activity AU NZ Total
Australia 15,594 219,098 74,536 15,666 252,420 90,614 Air travel 363 70 434
New 646 2,482 2,975 1,725 2,240 3,844 Employee commute 1,623 153 1,775 Zealand Natural gas 678 7 684 Total 16,240 221,580 77,511 17,391 254,660 94,458 Grid purchased electricity 25,433 213 25,646 Green-house Gas Emissions (GHG) Taxi and car travel 66 5 71
Transport fuels (controlled vehicles) 8 0 8
Mixed waste to landfill 46,291 2,528 48,818
Other (non-transport fuel) 75 0 75
Total 74,536 2,975 77,512
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Waste Table 11: Breakdown of total waste disposal by category and country
Table 9: Breakdown of non-hazardous waste disposal by country and year Metric tonnes Percentage change YOY Waste disposal type AU NZ Total AU NZ Total Living Centre Operations 2020 (Metric tonnes) 2019 (Metric tonnes) Type AU NZ Total AU NZ Total Recycling 43,798 3,423 47,221 -13% -94% -55%
Recycling 17,976 1,907 19,883 22,180* 2,022 24,202 Landfill (off-site) 35,940 2,181 38,121 -23% -43% -24%
Landfill (off-site) 35,548 2,158 37,706 46,647** 2,503 49,150 Composting/Organics 5,316 318 5,634 -14% 106% -11%
Composting/Organics 5,316 318 5,634 6,191 154 6,345 Other (to licensed waste 16,049 80 16,129 -5% 0% -4% contractor facilities) Other (to licenced waste 16,049 80 16,129 16,844 0 16,844 contractor facilities) Hazardous (to licensed waste 463 27 490 -8% -97% -66% contractor facilities) Total Living Centres 74,889 4,462 79,351 91,862 4,679 96,541 Total 101,566 6,029 107,595 -16% -90% -40% Total Living Centres recovery 52%*** 49%
Design and Construction 2020 (Metric tonnes) 2019 (Metric tonnes) Overview of Scentre Group waste generation supply chain Type AU NZ Total AU NZ Total Upstream Asset/Site Downstream Recycling 25,822 1,517 27,338 28,464 52,161 80,625 Retailers and Centre General waste, recyclable Customer packaging disposal Landfill (off-site) 392 23 416 1,346 1,346 Management incoming goods and removable materials, - packaging including pallets, construction and defit wastes Total design and construction 26,214 1,540 27,754 28,464 53,507 81,971 boxes and plastic wrapping Total design and construction recovery 99% 98% Scentre Group offer cardboard General Waste currently We work with retailers and Total for The Group 101,103 6,002 107,105 120,326 58,186 178,512 and soft clear plastics recycling reported as Scope 3 waste solution providers to for retailers incoming goods. emissions. encourage compostable and Total Group recovery 65% 75% We offer customers and recyclable packaging. State * 2019 Recycling for AU Living Centre operations restated from 22,148t to 22,180t. This change is to include Carindale Home & Leisure retailers comingled recycling, and Territory based schemes asset and Chermside Office. organics recovery and drive the use of recyclable ** 2019 Landfill for AU Living Centre operations restated from 46,582t to 46,647t. This change is to include Carindale Home & Leisure participate in container bags by retailers. asset and Chermside Office. *** Excludes an additional 1% recycling achieved by Scentre Group in VIC but not recycled by our third party suppliers. deposit schemes. We target 90% recovery of all Table 10: Breakdown of hazardous waste disposal by year construction wastes for every major project. Metric tonnes Type 2020 2019 Percentage change YOY
Hazardous 490 1,448 -66%
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Water
Table 12: Water withdrawn by category, region, country and year 2020 2019 Percentage change YOY Type AU (m3) NZ (m3) Total (m3) AU (m3) NZ (m3) Total (m3) AU NZ Total
Ground water 4,854 0 4,854 3,888* 0 3,888 25% 0% 25%
Rainwater collected by SCG 4,092 40 4,132 5,621** 0 5,621 -27% 0% -26%
Municipal water/other utilities 3,521,333 270,552 3,791,885 4,411,648 *** 261,266 4,672,914 -20% 4% -19%
Australian Capital Territory 0 0 0 0 0 0 0% 0% 0%
New South Wales 1,896,869 0 1,896,869 2,371,957 0 2,371,957 -20% 0% -20%
Queensland 578,518 0 578,518 729,962 0 729,962 -21% 0% -21%
South Australia 213,215 0 213,215 275,029 0 275,029 -22% 0% -22%
Victoria 500,290 0 500,290 745,179 0 745,179 -33% 0% -33%
Western Australia 341,387 0 341,387 299,022 0 299,022 14% 0% 14%
New Zealand 0 270,592 270,592 0 261,266 261,266 0% 4% 4%
Total 3,530,279 270,592 3,800,871 4,421,149 261,266 4,682,415 -20% 4% -19%
* 2019 Ground water AU restated from 338m3 to 3,888m3, to include Eastgardens, Innaloo & Whitford, following an audit of assets. ** 2019 Rainwater AU restated from 4,086m3 to 5,621m3, to include Warringah Mall, following an audit of assets. *** 2019 Municipal water / other utilities AU restated from 4,414,176m3 to 4,411,648m3. This change was made to Carousel & Whitford City.
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Energy, Water, Emissions Intensity (per square metre) and Building Certifications
Table 13: Energy, water, emissions intensity and building certifications by year 2020 2019 Site Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star interest value (000's intensity intensity 1 & 2 Certified Certified Certifications interest value (000's intensity Intensity 1 and 2 Certified Certified Certifications ($m) sqm) (GJ / sqm) (m3 / sqm) emissions Energy Water ($m) sqm) (GJ / sqm) (m3 / sqm) Emissions Energy Water intensity Star Star Intensity Star Star
(t CO2-e / Rating Rating (t CO2-e / Rating Rating sqm)* sqm)*
Australia (AUD)
Australian Capital Territory
Belconnen 100% 760.0 95.0 0.3 0.8 0.1 4.5 4.0 100% 890.0 96.1 0.34 0.88 0.06 4.5 4.0
Woden 50% 610.0 72.1 0.3 1.1 0.1 4.0 2.5 50% 700.0 72.9 0.35 1.15 0.07 4.0 2.5
New South Wales
Bondi Junction 100% 3,013.9 131.13 0.40 1.40 0.09 3.0 0.0 100% 3,305.9 131.2 0.46 1.74 0.10 2.5 0.0
Burwood 50% 1,045.4 63.20 0.41 1.51 0.09 3.0 1.5 50% 1,150.2 63.2 0.47 1.68 0.11 3.0 0.5
Chatswood 100% 1,295.6 81.04 0.33 1.20 0.08 3.5 N/A 100% 1,407.4 81.1 0.37 1.77 0.09 3.5 N/A
Eastgardens 50% 1,185.0 83.01 0.17 1.03 0.04 4.5 2.5 50% 1,440.0 82.7 0.23 1.25 0.06 4.0 N/A
Hornsby 100% 1,055.3 97.22 0.31 1.44 0.07 4.0 1.5 100% 1,095.3 99.5 0.32 1.74 0.08 4.0 1.5
Hurstville 50% 813.0 61.02 0.28 0.86 0.07 4.0 3.0 50% 885.0 61.2 0.36 1.10 0.08 3.5 2.5
Kotara 100% 875.0 82.43 0.37 0.94 0.07 5.0 2.5 100% 1,080.0 82.4 0.40 1.22 0.08 4.0 3.0
Liverpool 50% 975.4 82.31 0.32 1.27 0.07 4.0 2.0 50% 1,090.2 82.5 0.37 1.49 0.08 4.0 2.5
Miranda 50% 2,346.0 128.41 0.27 1.07 0.06 4.0 1.5 50% 2,632.0 128.3 0.31 1.45 0.07 N/A 1.0
Mt Druitt 50% 607.0 60.53 0.26 1.49 0.06 4.0 1.0 50% 645.0 60.4 0.30 1.85 0.07 3.5 0.5
Parramatta 50% 2,003.8 137.61 0.35 1.36 0.08 3.5 1.5 50% 2,218.8 137.2 0.45 1.73 0.10 3.5 1.5
Penrith 50% 1,300.0 91.40 0.31 1.32 0.07 4.0 1.0 50% 1,515.0 91.3 0.34 1.69 0.08 3.5 1.5
Sydney 100% 4,039.4 91.70 0.40 1.31 0.08 2.5 N/A 5.03 100% 4,220.0 91.6 0.53 2.01 0.11 N/A N/A 5.03
Tuggerah 100% 745.0 84.24 0.20 1.27 0.05 5.0 3.0 100% 810.0 83.3 0.22 1.24 0.05 5.0 2.5
Warringah Mall 50% 1,680.0 131.44 0.21 0.77 0.05 5.0 3.5 50% 1,850.0 131.6 0.24 0.89 0.05 5.0 3.0
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Table 13: Energy, water, emissions intensity and building certifications by year 2020 2019 Site Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star interest value (000's intensity intensity 1 & 2 Certified Certified Certifications interest value (000's intensity Intensity 1 and 2 Certified Certified Certifications ($m) sqm) (GJ / sqm) (m3 / sqm) emissions Energy Water ($m) sqm) (GJ / sqm) (m3 / sqm) Emissions Energy Water intensity Star Star Intensity Star Star
(t CO2-e / Rating Rating (t CO2-e / Rating Rating sqm)* sqm)*
Queensland
Carindale 50% 1,448.2 146.26 0.27 0.68 0.07 4.5 4.0 4.01 50% 1,680.2 136.2 0.35 1.00 0.08 4.0 3.5 4.01
Chermside 100% 2,544.0 177.44 0.34 0.91 0.08 4.0 3.5 100% 2,838.5 177.4 0.41 1.12 0.09 4.0 3.0
Coomera 50% 390.0 57.73 0.44 0.85 0.05 6.0 3.5 50% 421.0 58.3 0.49 0.96 0.06 N/A N/A
Garden City 100% 1,490.0 142.40 0.36 1.07 0.09 4.5 2.5 100% 1,740.0 142.4 0.40 1.33 0.10 4.0 3.0
Helensvale 50% 382.0 44.83 0.23 0.90 0.05 3.5 4.0 50% 450.0 44.9 0.26 1.33 0.06 3.0 4.0
North Lakes 50% 920.0 115.12 0.21 0.65 0.05 4.5 3.5 50% 968.0 86.0 0.32 1.05 0.07 3.5 3.5
South Australia
Marion 50% 1,276.0 137.07 0.30 0.74 0.03 4.0 3.0 50% 1,360.0 136.7 0.32 0.98 0.03 4.0 3.5
Tea Tree Plaza 50% 686.0 99.28 0.24 0.75 0.03 3.5 3.0 50% 799.0 99.3 0.25 0.90 0.03 3.5 4.0
West Lakes 50% 395.0 71.16 0.30 0.53 0.04 3.5 4.5 50% 481.0 71.2 0.30 0.72 0.04 3.5 4.0
Victoria
Airport West 50% 355.0 52.75 0.22 0.50 0.05 3.5 4.0 50% 413.0 52.9 0.23 0.72 0.06 3.5 4.5
Doncaster 50% 2,231.0 123.16 0.30 0.77 0.07 4.5 2.5 4.02 50% 2,532.0 122.7 0.39 1.15 0.10 4.0 2.0 4.02
Fountain Gate 100% 1,920.0 178.12 0.19 0.64 0.04 4.0 2.0 100% 2,285.0 178.1 0.25 0.76 0.05 4.0 2.5
Geelong 50% 435.0 51.97 0.27 0.45 0.06 4.0 4.0 50% 537.0 51.6 0.31 0.77 0.08 3.5 3.5
Knox 50% 850.0 140.98 0.41 0.73 0.07 4.5 2.0 50% 1,155.0 142.0 0.45 1.18 0.08 4.5 2.0
Plenty Valley 50% 500.0 62.49 0.27 0.90 0.06 4.5 2.5 50% 526.0 63.4 0.31 1.31 0.07 4.0 1.5
Southland 50% 1,440.0 129.42 0.29 0.64 0.07 4.0 3.0 50% 1,700.0 129.0 0.36 1.07 0.09 4.0 2.5
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Table 13: Energy, water, emissions intensity and building certifications by year 2020 2019 Site Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star Ownership Book GLA Energy Water Scope NABERS NABERS Green-Star interest value (000's intensity intensity 1 & 2 Certified Certified Certifications interest value (000's intensity Intensity 1 and 2 Certified Certified Certifications ($m) sqm) (GJ / sqm) (m3 / sqm) emissions Energy Water ($m) sqm) (GJ / sqm) (m3 / sqm) Emissions Energy Water intensity Star Star Intensity Star Star
(t CO2-e / Rating Rating (t CO2-e / Rating Rating sqm)* sqm)*
Western Australia
Booragoon 50% 950.0 72.28 0.42 0.87 0.08 2.0 3.0 50% 1,140.0 72.9 –4 –4 –4 3.0 3.0
Carousel 100% 1,405.0 110.53 0.31 1.13 0.05 4.5 2.5 100% 1,450.0 109.8 0.35 1.31 0.06 4.0 N/A
Innaloo 100% 291.0 56.57 0.20 0.86 0.04 2.0 3.5 100% 310.0 46.9 0.25 1.18 0.05 2.0 1.5
Whitford City 50% 500.0 84.76 0.32 1.23 0.06 1.0 2.0 50% 595.0 85.1 0.35 1.17 0.07 1.5 1.5
New Zealand (NZD)
Albany 51% 562.5 53.35 0.23 0.77 0.01 N/A N/A 51% 620.0 52.4 0.26 0.97 0.01 N/A N/A
Manukau 51% 370.0 44.98 0.39 0.96 0.01 N/A N/A 51% 432.0 41.6 0.46 1.38 0.01 N/A N/A
Newmarket 51% 1,156.3 77.02 0.37 0.88 0.01 N/A N/A 51% 1,218.9 74.0 0.17 0.29 0.00 N/A N/A
Riccarton 51% 565.1 55.13 0.30 1.39 0.01 N/A N/A 51% 655.1 54.9 0.35 1.46 0.01 N/A N/A
St Lukes 51% 405.1 39.48 0.38 1.06 0.01 N/A N/A 51% 485.1 39.5 0.43 1.30 0.01 N/A N/A
Total portfolio (AUD) 47,626.0 3,898.1 0.30 0.96 0.08 53,588.2 3,846 0.35 1.22 0.10
* Scope 1 and 2 emissions intensity excludes emissions from construction activity to be consistent with peers that mostly outsource construction activities to external builders. 1 Retail Centre Design and As Built 2 Shopping Centre Design 3 Retail Centre Design 4 Booragoon was acquired by Scentre Group in December 2019. Energy, Water and Scope 1 and 2 metrics are not available.
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Our economic performance
Table 1: Direct economic value generated and distributed by year Table 2: Financial assistance received from government 2020 2019 Movement $000's 2020 Direct economic value generated $m $m $m Type AU NZ Total
Revenues 2,512 5,026 (2,514) Tax relief and tax credits 9,316* NA 9,316
Direct economic value distributed Subsidies NA NA NA
Operating costs (5,080) (2,838) (2,242) Investment, R&D, other grants NA NA NA
Employee wages and benefits (267) (324) 57 Awards NA NA NA
Payments to government by*: Royalty holidays NA NA NA
AU Entities (55) (50) Financial assistance from export credit agencies NA NA NA
NZ Entities (14) (31) Financial incentives NA NA NA
Total (69) (81) 12 Other financial benefits NA NA NA
Payment to government as agent by*: Total 9,316 NA 9,316
AU Entities (52) (68) *Relates to temporary land tax and payroll tax relief from State Government (NSW, QLD and WA) as part of its economic stimulus package for businesses impacted by COVID-19. Land tax relief was passed through to retail partners. NZ Entities (7) (6)
Total (59) (74) 15
Community investments (2) (2) 0
Payments to providers of capital (1,300) (1,835) 535
Total economic value distributed (6,777) (5,154) (1,623)
Direct economic value retained (4,265) (128) (4,137)
*Scentre Group only operates in Australia and New Zealand and is a resident for the respective jurisdictions for tax purposes. i. GRI methodology applied: figures differ materially from International Financial Reporting Standards and cannot be compared to or provide any accurate indication of the Group’s profitability as reported in its statutory accounts as at 31 December 2020. ii. Revenues for 2019 included proceeds from Property Disposals of ($2.1b). Refer to our Annual Report for further detail. iii. Operating costs for 2020 included unrealised Property Revaluation losses of ($4.3b) and the Expected Credit Charge relating to COVID-19 of ($0.3b) offset by the Costs of Property Disposed in 2019 of $2.0b. Refer to our Annual Report for further detail.
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Assurance statement
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Contact
Scentre Group Registered Head Office Investor Information Listing Scentre Group Limited Level 30 Scentre Group Australian Securities Exchange — ABN 66 001 671 496 85 Castlereagh Street Level 30 SCG Sydney NSW 2000 85 Castlereagh Street Scentre Group Trust 1 Sydney NSW 2000 Website ARSN 090 849 746 New Zealand Office Telephone: +61 2 9358 7877 scentregroup.com (Responsible Entity: Level 2, Office Tower Facsimile: +61 2 9358 7881 Scentre Management Limited 277 Broadway Email: [email protected] Scentre Group Corporate Affairs ABN 41 001 670 579, Newmarket, Auckland 1023 Website: scentregroup.com/ [email protected] AFS Licence No 230329) Telephone: +64 9 978 5050 investors Facsimile: +64 9 978 5070 Scentre Group Trust 2 Principal Share Registry ARSN 146 934 536 Secretaries Computershare Investor (Responsible Entity: RE1 Limited Maureen T McGrath Services Pty Limited ABN 80 145 743 862, Paul F Giugni Level 3, 60 Carrington Street AFS Licence No 380202) Sydney NSW 2000 Auditors GPO Box 2975 Scentre Group Trust 3 Ernst & Young Melbourne VIC 3001 ARSN 146 934 652 200 George Street Telephone: +61 3 9946 4471 (Responsible Entity: RE2 Limited Sydney NSW 2000 Enquiries: 1300 730 458 ABN 41 145 744 065, (Australia only) AFS Licence No 380203) Facsimile: +61 3 9415 2500 Email: web.queries@ computershare.com.au Website: computershare.com
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